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REALTEK SEMICONDUCTOR CORPORATION
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
REVIEW REPORT OF INDEPENDENT
ACCOUNTANTS
MARCH 31, 2019 AND 2018
------------------------------------------------------------------------------------------------------------------------------------
For the convenience of readers and for information purpose only, the auditors’ report and the accompanying
financial statements have been translated into English from the original Chinese version prepared and used in
the Republic of China. In the event of any discrepancy between the English version and the original Chinese
version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and
financial statements shall prevail.
~1~
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE
PWCR19000007
To the Board of Directors and Shareholders of Realtek Semiconductor Corporation
Introduction
We have reviewed the accompanying consolidated balance sheets of Realtek Semiconductor Corporation
and subsidiaries (the “Group”) as at March 31, 2019 and 2018, and the related consolidated statements
of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended,
and notes to the consolidated financial statements, including a summary of significant accounting
policies. Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by
Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed
by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these
consolidated financial statements based on our reviews.
Scope of Review
Except as explained in the following paragraph, we conducted our reviews in accordance with the
Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the
Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial
statements consists of making inquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope than
an audit and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis for Qualified Conclusion
As explained in Notes 4(3) and 6(7), the financial statements of certain insignificant consolidated
subsidiaries, investments accounted for using the equity method and the information disclosed in Note
13 were based solely on the reports prepared by those subsidiaries, which were not reviewed by
independent accountants. Those statements reflect total assets of NT$3,497,450 thousand and
NT$3,343,961 thousand, constituting 5.59% and 6.55% of the consolidated total assets, and total
liabilities of NT$505,257 thousand and NT$202,332 thousand, constituting 1.39% and 0.71% of the
consolidated total liabilities as at March 31, 2019 and 2018, and total comprehensive income (loss) of
~2~
(NT$105,104) thousand and NT$86,270 thousand, constituting (6.94)% and 127.27% of the
consolidated total comprehensive income for the three-month periods then ended, respectively.
Furthermore, the investments accounted for under the equity method as of March 31, 2019 and 2018
amounted to NT$255,566 thousand and NT$281,748 thousand, respectively, and the related investment
loss were NT$5,257 thousand and NT$6,174 thousand for the three-month periods then ended,
respectively.
Qualified Conclusion
Except for the adjustments to the consolidated financial statements, if any, as might have been
determined to be necessary had the financial statements of certain consolidated subsidiaries and
investments accounted for using the equity method been reviewed by independent accountants, that we
might have become aware of had it not been for the situation described above, based on our reviews,
nothing has come to our attention that causes us to believe that the accompanying consolidated financial
statements do not present fairly, in all material respects, the consolidated financial position of the Group
as at March 31, 2019 and 2018, and of its consolidated financial performance and cash flows for the
three-month periods then ended in accordance with “Regulations Governing the Preparation of Financial
Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting”
as endorsed by the Financial Supervisory Commission.
Lin, Yu-Kuan Tsang, Kwok-Wah
For and on behalf PricewaterhouseCoopers, Taiwan
April 26, 2019
------------------------------------------------------------------------------------------------------------------------------------------------- The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars) (The balance sheets as of March 31, 2019 and 2018 are reviewed, not audited)
~3~
March 31, 2019 December 31, 2018 March 31, 2018 Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 3,537,440 6 $ 4,309,651 7 $ 3,091,308 6
1110 Financial assets at fair value
through profit or loss - current
6(2)
1,055,009 2 1,321,103 2 787,032 2
1136 Financial assets at amortised
cost - current
6(4)
33,871,674 54 31,220,150 54 27,433,068 54
1170 Accounts receivable, net 6(5) 6,065,350 10 5,647,722 10 5,147,736 10
1180 Accounts receivable, net -
related parties
6(5) and 7
1,595,768 2 1,772,071 3 1,256,775 2
1200 Other receivables 827,097 1 657,190 1 536,252 1
130X Inventories, net 6(6) 6,798,996 11 5,862,005 10 5,039,004 10
1410 Prepayments 249,997 - 297,327 1 166,633 -
11XX Total current assets 54,001,331 86 51,087,219 88 43,457,808 85
Non-current assets
1517 Financial assets at fair value
through other comprehensive
income - non-current
6(3)
1,647,527 3 1,651,072 3 1,700,225 3
1535 Financial assets at amortised
cost - non-current
6(4) and 8
66,183 - 66,059 - 65,324 -
1550 Investments accounted for
under the equity method
6(7)
255,566 1 261,628 - 281,748 1
1600 Property, plant and equipment 6(8) 3,285,714 5 3,316,578 6 3,252,415 7
1755 Right-of-use assets 6(9) 1,052,003 2 - - - -
1760 Real estate investment, net 6(10) 55,206 - 54,868 - 59,990 -
1780 Intangible assets 6(11) 2,137,206 3 1,686,249 3 2,126,561 4
1840 Deferred income tax assets 6(26) 74,866 - 78,472 - 85,033 -
1900 Other non-current assets 31,771 - 50,169 - 46,740 -
15XX Total non-current assets 8,606,042 14 7,165,095 12 7,618,036 15
1XXX Total assets $ 62,607,373 100 $ 58,252,314 100 $ 51,075,844 100
(Continued)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of New Taiwan dollars) (The balance sheets as of March 31, 2019 and 2018 are reviewed, not audited)
The accompanying notes are an integral part of these consolidated financial statements.
~4~
March 31, 2019 December 31, 2018 March 31, 2018 Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities 2100 Short-term borrowings 6(12) $ 15,280,000 25 $ 14,526,311 25 $ 13,918,320 27 2130 Contract liabilities - current 6(20) 181,281 - 148,696 - 66,205 - 2150 Notes payable 7,264 - 8,657 - 7,229 - 2170 Accounts payable 6,949,569 11 5,635,986 10 4,803,319 9 2180 Accounts payable - related
parties
7
286,894 1 249,869 1 255,349 1
2200 Other payables 6(13) 6,880,617 11 7,542,208 13 5,221,206 10 2220 Other payables - related parties 7 58,949 - 69,047 - 43,693 - 2230 Current income tax liabilities 668,638 1 601,614 1 396,846 1 2280 Lease liabilities - current 6(9) 70,697 - - - - - 2300 Other current liabilities 6(20) 3,998,644 6 3,719,866 6 2,980,517 6
21XX Total current liabilities 34,382,553 55 32,502,254 56 27,692,684 54
Non-current liabilities 2550 Provisions - non-current 6(15) 1,002,861 2 999,868 2 908,563 2 2570 Deferred income tax liabilities 18,132 - 22,310 - 26,276 - 2580 Lease liabilities - non-current 6(9) 962,680 1 - - - - 2600 Other non-current liabilities 78,967 - 80,983 - 7,814 -
25XX Total non-current
liabilities
2,062,640 3 1,103,161 2 942,653 2
2XXX Total liabilities 36,445,193 58 33,605,415 58 28,635,337 56
Equity Share capital 6(16) 3110 Common shares 5,080,955 8 5,080,955 9 5,080,955 10 Capital surplus 6(17) 3200 Capital surplus 3,236,659 5 3,236,659 5 3,730,316 7 Retained earnings 6(18) 3310 Legal reserve 4,467,099 7 4,467,099 8 4,127,884 8 3320 Special reserve 600,443 1 600,443 1 - - 3350 Undistributed earnings 12,229,380 20 10,850,172 19 10,641,961 21
Other equity 6(19) 3400 Other equity interest 538,012 1 401,964 - ( 1,150,203 ) ( 2 )
31XX Equity attributable to
owners of the parent
company
26,152,548 42 24,637,292 42 22,430,913 44
36XX Non-controlling interest 9,632 - 9,607 - 9,594 -
3XXX Total equity 26,162,180 42 24,646,899 42 22,440,507 44
3X2X Total liabilities and equity $ 62,607,373 100 $ 58,252,314 100 $ 51,075,844 100
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of New Taiwan dollars, except earnings per share amounts) (UNAUDITED)
~5~
Three months ended March 31
2019 2018
Items Notes AMOUNT % AMOUNT %
4000 Operating revenue 6(20) and 7 $ 12,834,642 100 $ 10,626,366 100
5000 Operating costs 6(6) and 7 ( 7,188,873 ) ( 56 ) ( 6,173,786 ) ( 58 )
5950 Gross profit 5,645,769 44 4,452,580 42
Operating expenses 6(24)(25) and 7
6100 Selling expenses ( 653,550 ) ( 5 ) ( 576,096 ) ( 5 )
6200 General and administrative
expenses
( 334,757 ) ( 2 ) ( 294,512 ) ( 3 )
6300 Research and development
expenses
( 3,466,084 ) ( 27 ) ( 2,968,487 ) ( 28 )
6450 Expected credit gains 12(2) 4,560 - 12,291 -
6000 Total operating expenses ( 4,449,831 ) ( 34 ) ( 3,826,804 ) ( 36 )
6900 Operating income 1,195,938 10 625,776 6
Non-operating income and
expenses
7010 Other income 6(21) 303,766 2 196,223 2
7020 Other gains and losses 6(22) 4,329 - 118,657 1
7050 Finance costs 6(23) ( 31,461 ) - ( 38,822 ) ( 1 )
7060 Share of profit of associates and
joint ventures accounted for
under equity method
6(7)
( 5,257 ) - ( 6,174 ) -
7000 Total non-operating income
and expenses
271,377 2 269,884 2
7900 Profit before income tax, net 1,467,315 12 895,660 8
7950 Income tax expense 6(26) ( 88,082 ) ( 1 ) ( 55,000 ) -
8200 Net income for the period $ 1,379,233 11 $ 840,660 8
(Continued)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of New Taiwan dollars, except earnings per share amounts) (UNAUDITED)
The accompanying notes are an integral part of these consolidated financial statements.
~6~
Three months ended March 31
2019 2018
Items Notes AMOUNT % AMOUNT %
Other comprehensive income, net 6(19) Components of other
comprehensive income that will
not be reclassified to profit or
loss
8316 Unrealised losses from
investments in equity
instruments measured at fair
value through other
comprehensive income
( $ 11,014 ) - ( $ 42,114 ) - 8320 Share of other comprehensive
income of associates and joint
ventures accounted for using
equity method, components of
other comprehensive income
that will not be reclassified to
profit or loss
4,166 - ( 799 ) -
8310 Components of other
comprehensive income that
will not be reclassified to
profit or loss
( 6,848 ) - ( 42,913 ) -
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Cumulative translation
differences of foreign operation
142,896 1 ( 729,962 ) ( 7 )
8360 Total components of other
comprehensive income that
will be reclassified to profit
or loss
142,896 1 ( 729,962 ) ( 7 )
8300 Other comprehensive income
(loss), net
$ 136,048 1 ( $ 772,875 ) ( 7 )
8500 Total comprehensive income for
the period
$ 1,515,281 12 $ 67,785 1
Profit attributable to: 8610 Equity holders of the parent
company
$ 1,379,208 11 $ 840,660 8 8620 Non-controlling interest 25 - - -
Profit for the period $ 1,379,233 11 $ 840,660 8
Comprehensive income 8710 Equity holders of the parent
company
$ 1,515,256 12 $ 67,785 1 8720 Non-controlling interest 25 - - -
Total comprehensive income
for the period
$ 1,515,281 12 $ 67,785 1
Earnings per share (in dollars) 9750 Basic earnings per share 6(27) $ 2.71 $ 1.66
9850 Diluted earnings per share 6(27) $ 2.67 $ 1.63
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in thousands of New Taiwan dollars)
(UNAUDITED)
Equity attributable to owners of the parent
Retained earnings Other equity interest
Notes
Share capital -
common stock
Capital surplus
Legal reserve
Special reserve
Undistributed
earnings
Financial
statements
translation
differences of
foreign operations
Unrealised gains
(losses) from
financial assets
measured at fair
value through
other
comprehensive
income
Unrealised gain or
loss on available-
for-sale financial
assets
Total
Non-controlling
interest
Total equity
The accompanying notes are an integral part of these consolidated financial statements.
~7~
2018
Balance at January 1, 2018 $ 5,065,062 $ 3,558,856 $ 4,127,884 $ - $ 9,698,159 ( $ 813,163 ) $ - $ 212,720 $ 21,849,518 $ 9,594 $ 21,859,112
Modified retrospective approach adjustment
6(19) - - - - 103,142 - 435,835 ( 212,720 ) 326,257 - 326,257
Balance at 1 January, after adjustments 5,065,062 3,558,856 4,127,884 - 9,801,301 ( 813,163 ) 435,835 - 22,175,775 9,594 22,185,369
Net income for the period - - - - 840,660 - - - 840,660 - 840,660
Other comprehensive loss for the period 6(19) - - - - - ( 729,962 ) ( 42,913 ) - ( 772,875 ) - ( 772,875 )
Total comprehensive income - - - - 840,660 ( 729,962 ) ( 42,913 ) - 67,785 - 67,785
Employees' compensation transferred to common stock
6(16) 15,893 163,692 - - - - - - 179,585 - 179,585
Changes in equity of associates accounted for using equity method
6(17) - 7,768 - - - - - - 7,768 - 7,768
Balance at March 31, 2018 $ 5,080,955 $ 3,730,316 $ 4,127,884 $ - $ 10,641,961 ( $ 1,543,125 ) $ 392,922 $ - $ 22,430,913 $ 9,594 $ 22,440,507
2019
Balance at January 1, 2019 $ 5,080,955 $ 3,236,659 $ 4,467,099 $ 600,443 $ 10,850,172 $ 129,811 $ 272,153 $ - $ 24,637,292 $ 9,607 $ 24,646,899
Net income for the period - - - - 1,379,208 - - - 1,379,208 25 1,379,233
Other comprehensive income for the period
6(19) - - - - - 142,896 ( 6,848 ) - 136,048 - 136,048
Total comprehensive income - - - - 1,379,208 142,896 ( 6,848 ) - 1,515,256 25 1,515,281
Balance at March 31, 2019 $ 5,080,955 $ 3,236,659 $ 4,467,099 $ 600,443 $ 12,229,380 $ 272,707 $ 265,305 $ - $ 26,152,548 $ 9,632 $ 26,162,180
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of New Taiwan dollars) (UNAUDITED)
Three-month periods ended March 31
Notes 2019 2018
~8~
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax $ 1,467,315 $ 895,660
Adjustments
Adjustments to reconcile profit (loss)
Depreciation 6(24) 160,721 132,071
Amortization 6(24) 212,263 268,750
Expected credit gains 12(2) ( 4,560 ) ( 12,291 )
Interest expense 6(23) 31,461 38,822
Interest income 6(21) ( 286,194 ) ( 181,549 )
Gain on financial assets at fair value through
profit or loss
6(22)
( 902 ) ( 39,562 )
Share of loss of associates and joint ventures
accounted for using equity method
6(7)
5,257 6,174
Loss (gain) on disposal of property, plant and
equipment
6(22)
48 ( 126 )
Other intangible assets transferred to expenses 526 1,526
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or
loss - current
296,801 33,936
Accounts receivable, net ( 411,838 ) 530,735
Accounts receivable, net - related parties 180,987 23,708
Other receivables, net 12,795 ( 101,127 )
Inventories ( 931,860 ) 400,944
Prepayments 47,330 103,276
Changes in operating liabilities
Notes payable ( 1,393 ) ( 1,403 )
Accounts payable 1,308,158 225,978
Accounts payable - related parties 20,785 ( 36,406 )
Other payables ( 644,485 ) ( 720,932 )
Other payables - related parties ( 10,097 ) ( 11,075 )
Contract liabilities-current 32,585 ( 37,459 )
Provisions-non-current 6(15) 2,993 7,133
Advance receipts ( 6,718 ) -
Other current liabilities 282,234 207,287
Accrued pension obligations ( 522 ) ( 627 )
(Continued)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of New Taiwan dollars) (UNAUDITED)
Three-month periods ended March 31
Notes 2019 2018
The accompanying notes are an integral part of these consolidated financial statements.
~9~
Cash inflow generated from operations $ 1,763,690 $ 1,733,443
Receipt of interest 103,492 181,533
Interest paid ( 31,215 ) ( 37,385 )
Income tax paid ( 20,170 ) ( 15,708 )
Net cash flows from operating activities 1,815,797 1,861,883
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost ( 5,476,385 ) ( 3,062,713 )
Proceeds from disposal of financial assets at
amortised cost
2,917,655 30,830
Acquisition of property, plant and equipment 6(28) ( 189,423 ) ( 98,046 )
Proceeds from disposal of property, plant and
equipment
- 133
Acquisition of intangible assets 6(28) ( 588,335 ) ( 412,651 )
Increase in refundable deposits ( 1,196 ) ( 4,773 )
Decrease in other non-current assets ( 2,433 ) ( 945 )
Net cash flows used in investing activities ( 3,340,117 ) ( 3,548,165 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term borrowings 6(29) 753,689 ( 4,134,304 )
Lease liabilities principal repayment 6(9) ( 23,026 ) -
Guarantee deposits (returned) received 6(29) ( 1,494 ) 480
Net cash flows from (used in) financing
activities
729,169 ( 4,133,824 )
Effect of exchange rate 22,940 ( 682,942 )
Net decrease in cash and cash equivalents ( 772,211 ) ( 6,503,048 )
Cash and cash equivalents at beginning of period 4,309,651 9,594,356
Cash and cash equivalents at end of period $ 3,537,440 $ 3,091,308
~10~
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
THREE-MONTH PERIODS ENDED MARCH 31, 2019 AND 2018
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE
INDICATED)
(REVIEWED, NOT AUDITED)
1. HISTORY AND ORGANISATION
Realtek Semiconductor Corporation (the “Company”) was incorporated as a company limited by shares
on October 21, 1987 and commenced commercial operations in March 1988. The Company was based
in Hsinchu Science-Based Industrial Park since October 28, 1989. The Company and its subsidiaries
(collectively referred herein as the “Group”) are engaged in the research, development, design, testing,
and sales of ICs and application softwares for these products.
2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL
STATEMENTS AND PROCEDURES FOR AUTHORISATION
These consolidated financial statements were authorised for issuance by the Board of Directors on
April 26, 2019.
3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”)
New standards, interpretations and amendments endorsed by the FSC effective from 2019 are as
follows:
Except for the following, the above standards and interpretations have no significant impact to the
Group’s financial condition and financial performance based on the Group’s assessment.
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Amendments to IFRS 9, ‘Prepayment features with negative
compensation’
January 1, 2019
IFRS 16, ‘Leases’ January 1, 2019
Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ January 1, 2019
Amendments to IAS 28, ‘Long-term interests in associates and joint
ventures’
January 1, 2019
IFRIC 23, ‘Uncertainty over income tax treatments’ January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle January 1, 2019
~11~
IFRS 16, ‘Leases’
A. IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard
requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases
with terms of 12 months or less and leases of low-value assets). The accounting stays the same
for lessors, which is to classify their leases as either finance leases or operating leases and
account for those two types of leases differently. IFRS 16 only requires enhanced disclosures
to be provided by lessors.
B. The Group has elected to apply IFRS 16 by not restating the comparative information (referred
herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as
endorsed by the FSC. Accordingly, the Group increased ‘right-of-use assets’ by $1,048,079 and
increased ‘lease liabilities’ by $1,048,079 with respect to the lease contracts of lessees on January
1, 2019.
C. The Group has used the following practical expedients permitted by the standard at the date of
initial application of IFRS 16:
(a)The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.
(b)The exclusion of initial direct costs for the measurement of ‘right-of-use asset’.
D. The Group calculated the present value of lease liabilities by using the incremental borrowing
interest rate range from 0.97% to 6.5%.
E. The Group recognised lease liabilities which had previously been classified as ‘operating leases’
under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments
under IAS 17 measured at the present value of the remaining lease payments, discounted using
the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as
follows:
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted
by the Group
None.
(3) IFRSs issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the
IFRSs as endorsed by the FSC are as follows:
Operating lease commitments disclosed by applying IAS 17 as at December
31, 2018
258,087$
Add: Adjustments as a result of a different treatment of extension and
termination options 1,108,891
Total lease contracts amount recognised as lease liabilities by applying IFRS
16 on January 1, 2019 1,366,978
Incremental borrowing interest rate at the date of initial application 0.97%~6.5%
Lease liabilities recognised as at January 1, 2019 by applying IFRS 16 1,048,079$
~12~
The above standards and interpretations have no significant impact to the Group’s financial condition
and financial performance based on the Group’s assessment.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted are consistent with Note 4 in the consolidated financial
statements for the year ended December 31, 2018, except for the compliance statement, basis of
preparations, basis of consolidation and additional policies as set out below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
(1) Compliance statement
A. The consolidated financial statements of the Group have been prepared in accordance with the
“Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the
International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated
financial statements for the year ended December 31, 2018.
(2) Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under
the historical cost convention:
(a) Financial assets (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less
present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as
endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the
process of applying the Group’s accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the
consolidated financial statements are disclosed in Note 5.
New Standards, Interpretations and Amendments
Effective date by
International Accounting
Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of
Material’
January 1, 2020
Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’
To be determined by
International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2021
~13~
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
Basis for preparation of consolidated financial statements is consistent with the 2018 consolidated
financial statements.
B. Subsidiaries included in the consolidated financial statements:
Name of
investor
Name of
subsidiary
Main business
activities
March 31,
2019
December
31, 2018
March 31,
2018 Description
Realtek
Semiconductor
Corporation
Leading
Enterprises
Limited
Investment holdings 100% 100% 100%
Realtek
Semiconductor
Corporation
Amber Universal
Inc.
〃 100% 100% 100%
Realtek
Semiconductor
Corporation
Realtek
Singapore
Private Limited
ICs manufacturing,
design, research,
development, sales,
and marketing
89% 89% 89%
Realtek
Semiconductor
Corporation
Bluocean Inc. Investment holdings 100% 100% 100%
Realtek
Semiconductor
Corporation
Talent Eagle
Enterprise Inc.
〃 100% 100% 100%
Realtek
Semiconductor
Corporation
Realtek
Investment
Singapore
Private Limited
〃 100% 100% 100%
Realtek
Semiconductor
Corporation
Realsun
Investment Co.,
Ltd.
〃 100% 100% 100% Note 1
Realtek
Semiconductor
Corporation
Hung-wei
Venture Capital
Co., Ltd.
〃 100% 100% 100% Note 1
Realtek
Semiconductor
Corporation
Realking
Investments
Limited
〃 100% 100% 100% Note 1
Realtek
Semiconductor
Corporation
Realsun
Technology
Corporation
ICs manufacturing,
design, research,
development, sales,
and marketing
100% 100% 100% Note 1
Ownership (%)
~14~
Name of
investor
Name of
subsidiary
Main business
activities
March 31,
2019
December
31, 2018
March 31,
2018 Description
Realtek
Semiconductor
Corporation
Bobitag Inc. Manufacture and
installation of
computer equipment
and wholesale, retail
and related service of
electronic materials
and information /
software
67% 67% 67% Note 1
Leading
Enterprises
Limited
Realtek
Semiconductor
(Japan) Corp.
ICs design,sales and
consultancy
100% 100% 100% Note 1
Leading
Enterprises
Limited
Circon Universal
Inc.
Investment holdings 100% 100% 100% Note 1
Leading
Enterprises
Limited
Realtek
Singapore
Private Limited
ICs manufacturing,
design, research,
development, sales,
and marketing
11% 11% 11%
Amber Universal
Inc.
Realtek
Semiconductor
(HK) Limited
Information services
and technical support
100% 100% 100% Note 1
Amber Universal
Inc.
Realtek
Semiconductor
(Shen Zhen)
Corp.
R&D and technical
support
100% 100% 100% Note 1
Empsonic
Enterprises Inc.
Realsil
Microelectronics
Corp.
〃 100% 100% 100% Note 1
Realtek
Singapore
Private Limited
Cortina Access
Inc.
R&D and information
services
100% 100% 100% Note 1
Realtek
Singapore
Private Limited
Cortina Systems
Taiwan Limited
R&D and technical
support
100% 100% 100% Note 1
Realtek
Singapore
Private Limited
Cortina Network
Systems
Shanghai Co.,
Ltd.
〃 100% 100% 100% Note 1
Talent Eagle
Enterprise Inc.
Ubilinx
Technology Inc.
R&D and information
services
100% 100% 100% Note 1
Ownership (%)
~15~
Note 1: The financial statements of the entity as of and for the three-month periods ended March
31, 2019 and 2018 were not reviewed by the independent accountants as the entity did
not meet the definition of a significant subsidiary.
Note 2: Realtek Viet Nam Co., Ltd. was newly established on August 9, 2018.
Note 3: RayMX Microelectronics Corp. was newly established on December 7, 2018.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Nature and extent of the restrictions on fund remittance from subsidiaries to the parent company:
None.
(4) Leasing arrangements (lessee)-right-of-use assets/ lease liabilities
Effective 2019
A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which
the leased asset is available for use by the Group.
B. Lease liabilities include the net present value of the remaining lease payments at the
commencement date, discounted using the incremental borrowing interest rate.
Lease payments are comprised of the following:
Fixed payments, less any lease incentives receivable.
The Group subsequently measures the lease liability at amortised cost using the interest method
and recognises interest expense over the lease term. The lease liability is remeasured and the
amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are
changes in the lease term or lease payments and such changes do not arise from contract
modifications.
Name of
investor
Name of
subsidiary
Main business
activities
March 31,
2019
December
31, 2018
March 31,
2018 Description
Realtek
Singapore
Private Limited
Empsonic
Enterprises Inc.
Investment holdings 100% 100% 100% Note 1
Realtek
Singapore
Private Limited
Realtek
Viet Nam
Co., Ltd.
R&D and technical
support
100% 100% - Note 1
Note 2
Realtek
Singapore
Private Limited
RayMX
Microelectronics
Corp.
ICs manufacturing,
design, research,
development, sales,
and marketing
29% 29% - Note 1
Note 3
Realsil
Microelectronics
Corp.
RayMX
Microelectronics
Corp.
ICs manufacturing,
design, research,
development, sales,
and marketing
71% 71% - Note 1
Note 3
Ownership (%)
~16~
C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability.
(b) Any lease payments made at or before the commencement date.
The right-of-use asset is measured subsequently using the cost model and is depreciated from the
commencement date to the earlier of the end of the asset’s useful life or the end of the lease term.
When the lease liability is remeasured, the amount of remeasurement is recognised as an
adjustment to the right-of-use asset.
(5) Employee benefits
Pensions
Defined benefit plans
Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate
derived from the actuarial valuation at the end of the prior financial year, adjusted for significant
market fluctuations since that time and for significant curtailments, settlements, or other significant
one-off events. And, the related information is disclosed accordingly.
(6) Income tax
A. The interim period income tax expense is recognised based on the estimated average annual
effective income tax rate expected for the full financial year applied to the pretax income of the
interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises
the effect of the change immediately in the interim period in which the change occurs. The effect
of the change on items recognised outside profit or loss is recognised in other comprehensive
income or equity while the effect of the change on items recognised in profit or loss is recognised
in profit or loss.
5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF
ASSUMPTION UNCERTAINTY
There have been no significant changes as of March 31, 2019. Please refer to Note 5 in the consolidated
financial statements for the year ended December 31, 2018.
6. DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash and cash equivalents
March 31, 2019 December 31, 2018 March 31, 2018
Cash on hand and revolving funds 1,842$ 1,819$ 1,737$
Checking accounts and demand
deposits
3,470,135 3,248,619 1,747,384
Time deposits 65,463 1,059,213 1,323,681
Cash equivalents-bonds sold under
repurchase agreement - - 18,506
Total 3,537,440$ 4,309,651$ 3,091,308$
~17~
The Group transacts with a variety of financial institutions all with high credit quality to disperse
credit risk, so it expects that the probability of counterparty default is remote.
(2) Financial assets at fair value through profit or loss
A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or
loss are listed below:
B. The Group has no financial assets at fair value through profit or loss pledged to others.
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided
in Note 12(2).
(3) Financial assets at fair value through other comprehensive income
A. The Group has elected to classify equity instruments investments that are considered to be strategic
investments as financial assets at fair value through other comprehensive income. The fair value
of such investments amounted to $1,647,527, $1,651,072 and $1,700,225 on March 31, 2019,
December 31, 2018 and March 31, 2018, respectively.
Items March 31, 2019 December 31, 2018 March 31, 2018
Current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Listed stocks 68,416$ 69,781$ 131,181$
Beneficiary certificates 986,593 1,251,322 655,851
1,055,009$ 1,321,103$ 787,032$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Financial assets mandatorily measured at fair
value through profit or loss
Equity instruments 1,364)($ 34,306$
Beneficiary certificates 2,266 5,256
902$ 39,562$
Items March 31, 2019 December 31, 2018 March 31, 2018
Non-current items:
Equity instruments
Listed stocks 506,677$ 253,908$ 338,905$
Emerging stocks 15,316 339,027 309,818
Unlisted stocks 1,125,534 1,058,137 1,051,502
1,647,527$ 1,651,072$ 1,700,225$
~18~
B. Amounts recognised in other comprehensive income in relation to the financial assets at fair value
through other comprehensive income are listed below:
C. The Group has no financial assets at fair value through other comprehensive income pledged to
others.
D. Information relating to credit risk of financial assets at fair value through other comprehensive
income is provided in Note 12(2).
(4) Financial assets at amortised cost
A. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided
in Note 8.
B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).
(5) Accounts receivable
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income 11,014)($ 42,114)($
Items March 31, 2019 December 31, 2018 March 31, 2018
Current items:
Structured deposits -$ -$ 22,262$
Time deposits 33,871,674 31,220,150 27,410,806
33,871,674$ 31,220,150$ 27,433,068$
Non-current items:
Time deposits 66,183$ 66,059$ 65,324$
March 31, 2019 December 31, 2018 March 31, 2018
Accounts receivable 6,109,570$ 5,693,973$ 5,186,839$
Accounts receivable -
related parties 1,605,173 1,783,992 1,265,173
Less: allowance for bad debts 53,625)( 58,172)( 47,501)(
7,661,118$ 7,419,793$ 6,404,511$
~19~
A. The aging analysis of accounts receivable is as follows:
The above aging analysis is based on past due date.
B. The Group has no accounts receivable pledged to others.
C. Information relating to credit risk of accounts receivable is provided in Note 12(2).
(6) Inventories
March 31, 2019
Not past due 7,704,052$ 7,460,264$ 6,447,665$
Up to 30 days 9,166 17,665 4,304
31 to 90 days 1,489 - 6
Over 180 days 36 36 37
7,714,743$ 7,477,965$ 6,452,012$
December 31, 2018 March 31, 2018
Cost
Allowance for
obsolescence and
market value decline Book value
Raw materials 720,165$ 27,158)($ 693,007$
Work in process 4,273,483 286,192)( 3,987,291
Finished goods 2,589,851 471,153)( 2,118,698
Total 7,583,499$ 784,503)($ 6,798,996$
March 31, 2019
Cost
Allowance for
obsolescence and
market value decline Book value
Raw materials 399,009$ 23,147)($ 375,862$
Work in process 3,614,676 218,774)( 3,395,902
Finished goods 2,524,712 434,471)( 2,090,241
Total 6,538,397$ 676,392)($ 5,862,005$
December 31, 2018
Cost
Allowance for
obsolescence and
market value decline Book value
Raw materials 364,088$ 48,541)($ 315,547$
Work in process 2,827,049 275,854)( 2,551,195
Finished goods 2,529,438 357,176)( 2,172,262
Total 5,720,575$ 681,571)($ 5,039,004$
March 31, 2018
~20~
Operating costs incurred on inventories for the three-month periods ended March 31, 2019 and 2018
were as follows:
(7) Investments accounted for using the equity method
The loss on investments accounted for using equity method amounted to $5,257 and $6,174 for the
three-month periods ended March 31, 2019 and 2018, respectively.
(8) Property, plant and equipment
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Cost of inventories sold and others 7,075,189$ 6,013,346$
Loss on market value decline and obsolete
and slow-moving inventories 107,833 147,502
Loss on scrap inventory 5,851 12,938
7,188,873$ 6,173,786$
March 31, 2019 December 31, 2018 March 31, 2018
Technology Partner V Venture
Capital Corporation
38,110$ 36,917$ 43,769$
5V Technologies, Taiwan Ltd. 13,159 16,106 15,887
Estinet Technologies Incorporation 37,596 40,682 37,027
Innorich Venture Capital Corp. 166,701 167,923 185,065
255,566$ 261,628$ 281,748$
Buildings Machinery Test equipment Office equipment Others Total
At January 1, 2019
Cost 3,246,163$ 3,726,816$ 2,225,944$ 232,162$ 754,293$ 10,185,378$
Accumulated
depreciation and
impairment 1,197,942)( 3,456,955)( 1,514,287)( 151,702)( 547,914)( 6,868,800)(
2,048,221$ 269,861$ 711,657$ 80,460$ 206,379$ 3,316,578$
2019
Opening net book
amount2,048,221$ 269,861$ 711,657$ 80,460$ 206,379$ 3,316,578$
Additions - 2,408 30,134 4,316 61,510 98,368
Disposals 18)( - 8)( 20)( 2)( 48)(
Depreciation 31,577)( 15,874)( 71,718)( 5,524)( 13,947)( 138,640)(
Net exchange difference 8,667 28 790 149)( 120 9,456
Closing net book
amount 2,025,293$ 256,423$ 670,855$ 79,083$ 254,060$ 3,285,714$
At March 31, 2019
Cost 3,262,312$ 3,729,280$ 2,260,720$ 237,300$ 816,593$ 10,306,205$
Accumulated
depreciation and
impairment 1,237,019)( 3,472,857)( 1,589,865)( 158,217)( 562,533)( 7,020,491)(
2,025,293$ 256,423$ 670,855$ 79,083$ 254,060$ 3,285,714$
~21~
Amount of borrowing costs capitalised as part of property, plant and equipment: None.
(9) Leasing arrangements-lessee
A. The Group leases various assets including land and buildings. Lease terms are negotiated on an
individual basis and contain a wide range of different terms and conditions. The lease agreements
do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation are as follows:
C. The information on income and expense accounts relating to lease contracts is as follows:
D. For the three-month period ended March 31, 2019, the Group’s total cash outflow for leases was
$23,026.
Buildings Machinery Test equipment Office equipment Others Total
At January 1, 2018
Cost 3,205,530$ 3,611,076$ 1,783,425$ 204,663$ 722,408$ 9,527,102$
Accumulated
depreciation and
impairment 1,074,899)( 3,377,730)( 1,276,016)( 137,072)( 498,436)( 6,364,153)(
2,130,631$ 233,346$ 507,409$ 67,591$ 223,972$ 3,162,949$
2018
Opening net book
amount2,130,631$ 233,346$ 507,409$ 67,591$ 223,972$ 3,162,949$
Additions 6,238 16,652 143,332 17,763 33,719 217,704
Disposals - - 7)( - - 7)(
Reclassifications 50,407 - - 567)( 50,826)( 986)(
Depreciation 32,929)( 21,329)( 60,156)( 5,102)( 11,531)( 131,047)(
Net exchange difference 4,921 200)( 375 112)( 1,182)( 3,802
Closing net book
amount 2,159,268$ 228,469$ 590,953$ 79,573$ 194,152$ 3,252,415$
At March 31, 2018
Cost 3,271,013$ 3,627,379$ 1,928,541$ 222,067$ 703,858$ 9,752,858$
Accumulated
depreciation and
impairment 1,111,745)( 3,398,910)( 1,337,588)( 142,494)( 509,706)( 6,500,443)(
2,159,268$ 228,469$ 590,953$ 79,573$ 194,152$ 3,252,415$
March 31, 2019
For the three-month period
ended March 31, 2019
Carrying amount Depreciation
Land 714,337$ 4,625$
Buildings 337,666 16,442
1,052,003$ 21,067$
For the three-month period
ended March 31, 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 5,704
~22~
(10) Investment property
A. Rental income from the lease of the investment property and direct operating expenses arising
from the investment property are shown below:
B. The Group’s investment property is located in Mainland China. The fair value is based on
valuation information from Information Centre of Real Estate in local governments in Mainland
China and is adjusted accordingly. As of March 31, 2019, December 31, 2018 and March 31,
2018, the fair value was $137,316, $136,949 and $138,601 and classified as level 3, respectively.
Buildings Buildings
At January 1, 2019 At January 1, 2018
Cost 83,688$ Cost 85,694$
Accumulated depreciation
and impairment 28,820)(
Accumulated depreciation
and impairment 25,440)(
54,868$ 60,254$
2019 2018
Opening net book value 54,868$ Opening net book value 60,254$
Depreciation 1,014)( Depreciation 1,024)(
Net exchange difference 1,352 Net exchange difference 760
Closing net book amount 55,206$ Closing net book amount 59,990$
At March 31, 2018 At March 31, 2018
Cost 85,757$ Cost 86,785$
Accumulated depreciation
and impairment 30,551)(
Accumulated depreciation
and impairment 26,795)(
55,206$ 59,990$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Rental income from the lease of the investment
property 617$ 1,594$
Operating expenses arising from the investment
property that generated rental income during
the year 1,014$ 1,024$
~23~
(11) Intangible assets
Computer
software
Intellectual
property Goodwill Others Total
At January 1, 2019
Cost 3,234,611$ 3,911,807$ 650,778$ 298,916$ 8,096,112$
Accumulated amortisation
and impairment 2,738,897)( 3,149,643)( 350,621)( 170,702)( 6,409,863)(
495,714$ 762,164$ 300,157$ 128,214$ 1,686,249$
2019
Opening net book amount 495,714$ 762,164$ 300,157$ 128,214$ 1,686,249$
Additions 649,980 17,761 - - 667,741
Transfers - - - 526)( 526)(
Amortisation 124,300)( 76,545)( - 11,418)( 212,263)(
Net exchange difference 1 5,271)( 898 377 3,995)(
Closing net book amount 1,021,395$ 698,109$ 301,055$ 116,647$ 2,137,206$
At March 31, 2019
Cost 3,884,622$ 3,934,459$ 651,676$ 299,274$ 8,770,031$
Accumulated amortisation
and impairment 2,863,227)( 3,236,350)( 350,621)( 182,627)( 6,632,825)(
1,021,395$ 698,109$ 301,055$ 116,647$ 2,137,206$
Computer
software
Intellectual
property Goodwill Others Total
At January 1, 2018
Cost 2,772,830$ 3,751,440$ 642,134$ 298,771$ 7,465,175$
Accumulated amortisation
and impairment 2,241,399)( 2,673,224)( 350,621)( 121,576)( 5,386,820)(
531,431$ 1,078,216$ 291,513$ 177,195$ 2,078,355$
2018
Opening net book amount 531,431$ 1,078,216$ 291,513$ 177,195$ 2,078,355$
Additions 323,088 10,049 - 200 333,337
Transfers 1,353 2,096 - 3,989)( 540)(
Amortisation 126,720)( 131,173)( - 10,857)( 268,750)(
Net exchange difference 333)( 4,442)( 7,110)( 3,956)( 15,841)(
Closing net book amount 728,819$ 954,746$ 284,403$ 158,593$ 2,126,561$
At March 31, 2018
Cost 3,096,741$ 3,766,043$ 635,024$ 287,987$ 7,785,795$
Accumulated amortisation
and impairment 2,367,922)( 2,811,297)( 350,621)( 129,394)( 5,659,234)(
728,819$ 954,746$ 284,403$ 158,593$ 2,126,561$
~24~
Details of amortisation on intangible assets are as follows:
(12) Short-term borrowings
Interest expense recognised in profit or loss amounted to $25,757 and $38,822 for the three-month
periods ended March 31, 2019 and 2018, respectively.
(13) Other payables
(14) Pension
A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance
with the Labor Standards Law, covering all regular employees’ service years prior to the
enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of
employees who chose to continue to be subject to the pension mechanism under the Law.
Under the defined benefit pension plan, two units are accrued for each year of service for the
first 15 years and one unit for each additional year thereafter, subject to a maximum of 45
units. Pension benefits are based on the number of units accrued and the average monthly
salaries and wages of the last 6 months prior to retirement. The Company and its domestic
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Operating costs 988$ 847$
Operating expenses 211,275 267,903
212,263$ 268,750$
Type of borrowings March 31, 2019 Interest rate range Collateral
Bank borrowings
Unsecured borrowings 15,280,000$ 0.69%~0.79% None
Type of borrowings December 31, 2018 Interest rate range Collateral
Bank borrowings
Unsecured borrowings 14,526,311$ 0.67%~4.16% None
Type of borrowings March 31, 2018 Interest rate range Collateral
Bank borrowings
Unsecured borrowings 13,918,320$ 0.75%~2.11% None
March 31, 2019 December 31, 2018 March 31, 2018
Accrued salaries 2,545,025$ 3,390,433$ 1,672,080$
Payable for employees'
compensation 2,247,554 1,884,203 1,843,091
Other accrued expenses 1,173,913 1,235,690 906,002
Payables on equipment 19,346 110,401 152,799
Payables on software and
intellectual property 763,844 684,438 571,335
Others 130,935 237,043 75,899
6,880,617$ 7,542,208$ 5,221,206$
~25~
subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries
and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the
name of the independent retirement fund committee. Also, the Company and its domestic
subsidiaries would assess the balance in the aforementioned labor pension reserve account
by December 31, every year. If the account balance is insufficient to pay the pension
calculated by the aforementioned method to the employees expected to qualify for
retirement in the following year, the Company and its domestic subsidiaries will make
contributions for the deficit by next March.
(b) The pension costs under the defined contribution pension plans of the Group for the three-
month periods ended March 31, 2019 and 2018 were $883 and $873, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year
ending December 31, 2020 amounts to $6,000.
B. (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a
defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the
“Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the
Company and its domestic subsidiaries contribute monthly an amount based on 6% of the
employees’ monthly salaries and wages to the employees’ individual pension accounts at
the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon
termination of employment.
(b) The Company’s mainland China subsidiaries, Realsil Microelectronics Corp., Realtek
Semiconductor (Shen Zhen) Corp., Cortina Network Systems Shanghai Co., Ltd., and
RayMX Microelectronics Corp. have a defined contribution plan. Monthly contributions
to an independent fund administered by the government in accordance with the pension
regulations in the People’s Republic of China (PRC) are based on certain percentage of
employees’ monthly salaries and wages. The contribution percentage was 13%, 13%, 16%,
and 16%, respectively. Monthly contributions to an independent fund are administered by
the government. Other than the monthly contributions, the Group has no further
obligations.
(c) The pension costs under the defined contribution pension plans of the Group for the three-
month periods ended March 31, 2019 and 2018 were $62,381 and $56,318, respectively.
(15) Provision
As of March 31, 2019, provisions were estimated for possible infringement litigations.
2019
At January 1 999,868$
Changes in provision 2,993
At March 31 1,002,861$
~26~
(16) Share capital
A. As of March 31, 2019, the Company’s authorised capital was $8,900,000, consisting of 890
million thousand shares of ordinary stock (including 80 million thousand shares reserved for
employee stock options), and the paid-in capital was $5,080,955 with a par value of $10 (in
dollars) per share. All proceeds from shares issued have been collected. The beginning
balance and closing balance of the number of the Company’s ordinary shares outstanding of
the period remain the same as in previous two periods.
B. On January 24, 2002, the Company increased its new common stock and sold its old common
stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4
common stocks, so the total common stocks issued were 55,694 thousand shares. The
Company’s GDRs are traded in Luxembourg stock exchange. As of March 31, 2019, the
outstanding GDRs were 312 thousand units, or 1,249 thousand shares of common stock,
representing 0.25% of the Company’s total common stocks.
(17) Capital surplus
Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of
par value on issuance of common stocks and donations can be used to cover accumulated deficit
or to issue new stocks or cash to shareholders in proportion to their share ownership, provided
that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act
requires that the amount of capital surplus to be capitalised mentioned above should not exceed
10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated
deficit unless the legal reserve is insufficient.
Unit : Thousands of shares
2019 2018
At January 1 508,095 506,506
Employees’ compensation transferred to
common stock - 1,589
At March 31 508,095 508,095
Share premium
Change in
associates accounted
for using equity
method Others Total
At January 1 / March 31 3,196,250$ 40,208$ 201$ 3,236,659$
2019
~27~
(18) Retained earnings
A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first
be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining
amount shall be set aside as legal reserve, if legal reserve has accumulated to an amount equal
to the paid-in capital, then legal reserve is not required to be set aside any more. Additionally,
special reserve is set aside or reversed in accordance with related laws or Competent
Authority. The Company should consider factors of finance, business and operations to
appropriate distributable earnings for the period, and appropriate all or partial reserve in
accordance with regulations and the Competent Authority. The Company’s dividend policy
takes into consideration the Company’s future expansion plans and future cash flows. In
accordance with the Company’s dividend policy, cash dividends shall account for at least
10% of the total dividends distributed.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in
proportion to their share ownership, the legal reserve shall not be used for any other purpose.
The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to
their share ownership is permitted, provided that the distribution of the reserve is limited to
the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside special reserve from the debit
balance on other equity items at the balance sheet date before distributing earnings. When
debit balance on other equity items is reversed subsequently, the reversed amount could be
included in the distributable earnings.
D. The appropriation of 2018 earnings had been approved by the Board of Directors’ meeting
on April 26, 2019, and the appropriation of 2017 earnings had been resolved at the
stockholders’ meeting on June 5, 2018. Details are summarised below:
At January 1 3,540,653$ 18,203$ 3,558,856$
Change in associates accounted for
using equity method - 7,768 7,768
Employees’ compensation tranferred to
common stock 163,692 - 163,692
At March 31 3,704,345$ 25,971$ 3,730,316$
2018
Share premium
Change in
associates accounted
for using equity
method Total
~28~
E. On June 5, 2018, the stockholders resolved during their meeting to distribute $508,095 by
cash ($1 per share) from capital surplus.
F. On April 26, 2019, the Board of Directors approved during its meeting to distribute $508,095
as cash dividends ($1 per share) from capital surplus. Aforementioned appropriation of 2018
earnings and cash dividends from capital surplus are yet to be resolved at the shareholders’
meeting.
G. For the information relating to employees’ compensation and directors’ remuneration, please
refer to Note 6(25).
(19) Other equity items
Amount
Dividends per
share (in dollars) Amount
Dividends per
share (in dollars)
Legal reserve 435,077$ -$ 339,215$ -$
Special reserve (reversal) 600,443)( - 600,443 -
Cash dividends 3,048,573 6.00 2,286,430 4.50
Total 2,883,207$ 6.00$ 3,226,088$ 4.50$
2018 2017
Unrealised
gains (losses)
on valuation
Currency
translation difference Total
At January 1 272,153$ 129,811$ 401,964$
Revaluation:
–Subsidiaries 11,014)( - 11,014)(
–Associates 4,166 - 4,166
Currency translation
differences:
–Subsidiaries - 142,896 142,896
At March 31 265,305$ 272,707$ 538,012$
2019
~29~
(20) Operating revenue
A. Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods and services at a point in time in the
following major product lines:
Unrealised
gains (losses)
on valuation
Available-for-
sale
investment
Currency
translation
difference Total
At January 1 -$ 212,720$ 813,163)($ 600,443)($
Modified retrospective
approach adjustment:
Revaluation 538,977 212,720)( - 326,257
Revaluation transferred to
retained earnings
103,142)( - - 103,142)(
Revaluation:
–Subsidiaries 42,114)( - - 42,114)(
–Associates 799)( - - 799)(
Currency translation
differences:
–Subsidiaries - - 729,962)( 729,962)(
At March 31 392,922$ -$ 1,543,125)($ 1,150,203)($
2018
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Revenue from contracts with customers 12,834,642$ 10,626,366$
For the three-month period ended March 31, 2019
Integrated
circuit products Others Total
Revenue from external customer contracts 12,805,776$ 28,866$ 12,834,642$
Timing of revenue recognition
At a point in time 12,805,776$ 28,866$ 12,834,642$
For the three-month period ended March 31, 2018
Integrated
circuit products Others Total
Revenue from external customer contracts 10,602,652$ 23,714$ 10,626,366$
Timing of revenue recognition
At a point in time 10,602,652$ 23,714$ 10,626,366$
~30~
B. Contract liabilities
The Group has recognised the following revenue-related contract liabilities:
Revenue recognised that was included in the contract liability balance at the beginning of the
period:
C. Refund liabilities
The Group estimates the discounts based on accumulated experience. The estimation is subject
to an assessment at each reporting date.
The following refund liabilities:
(21) Other income
(22) Other gains and losses
March 31, 2019 December 31, 2018 March 31, 2018
Contract liabilities – advance
sales receipts 181,281$ 148,696$ 66,205$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Contract liabilities – advance sales receipts 97,671$ 91,285$
March 31, 2019 December 31, 2018 March 31, 2018
Refund liabilities – current 3,979,962$ 3,705,665$ 2,968,625$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Interest income:
Interest income from bank deposits 286,194$ 181,549$
Other income 17,572 14,674
Total 303,766$ 196,223$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
(Losses) gains on disposal of property, plant and
equipment 48)($ 126$
Net currency exchange gains 4,327 79,084
Gains on financial assets at fair value
through profit or loss 902 39,562
Other losses 852)( 115)(
Total 4,329$ 118,657$
~31~
(23) Finance costs
(24) Expenses by nature
(25) Employee benefit expenses
A. In accordance with the Company’s Articles of Incorporation, the Company shall appropriate
no higher than 3% for directors’ remuneration and no less than 1% for employees’
compensation, if the Company generates profit. If the Company has accumulated deficit,
earnings should be reserved to cover losses before the appropriation of directors’
remuneration and employees’ compensation. Aforementioned employees’ compensation
could be distributed by cash or stocks. Specifics of the compensation are to be determined
in a board meeting that registers two-thirds of directors in attendance, and the resolution
must receive support from half of participating members. The resolution should be reported
to the shareholders during the shareholders’ meeting.
B. The Board of Directors during their meeting resolved on March 21, 2019 the proposal of
employees’ cash compensation of $1,151,674 and directors’ remuneration of $76,778 for 2018.
Employees’ compensation and directors’ remuneration of 2018 as resolved at the meeting of the
Board of Directors were in agreement with those amounts recognised in the 2018 financial
statements.
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Interest expense 31,461$ 38,822$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Employee benefit expenses 3,102,185$ 2,458,083$
Depreciation 160,721$ 132,071$
Amortisation charges on
intangible assets 212,263$ 268,750$
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Wages and salaries 2,888,791$ 2,258,877$
Labor and health insurance fees 120,454 105,845
Pension costs 63,264 57,191
Other personnel expenses 29,676 36,170
Total 3,102,185$ 2,458,083$
~32~
C. The shareholders during their meeting resolved on June 5, 2018 the proposal of employees’ stock
compensation of $179,585, employees’ cash compensation of $718,338 and directors’ and
supervisors’ remuneration of $59,862 for 2017. Employees’ compensation and directors’ and
supervisors’ remuneration of 2017 as resolved at the meeting of the Board of Directors were in
agreement with those amounts recognised in the 2017 financial statements. The above
employees’ stock compensation was based on the closing price of $113 at the previous day of
the board meeting resolution on March 8, 2018, and the total new shares issued amounted to
1,589 thousand shares.
D. For the three-month periods ended March 31, 2019 and 2018, employees’ compensation was
accrued at $363,351 and $220,188, respectively; directors’ remuneration was accrued at $24,223
and $14,679, respectively. If the estimated amounts differ from the actual distribution resolved
by the Board of Directors and the shareholders’ meeting, the Company will recognize the change
as an adjustment to income of next year.
Information about employees’ compensation and directors’ remuneration of the Company as
resolved by the Board of Directors and the shareholders at the shareholders’ meeting will be
posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.
(26) Income tax
A. Income tax expense
B. The Company’s income tax returns through 2017 have been assessed and approved by the Tax
Authority.
C. Under the amendments to the Income Tax Act which was promulgated by the President of the
Republic of China in February, 2018, the Company’s applicable income tax rate was raised
from 17% to 20% effective from January 1, 2018. The Group has assessed the impact of the
change in income tax rate.
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Current income tax:
Current income tax on profits for the year 88,655$ 69,955$
Total current income tax 88,655 69,955
Deferred income tax:
Origination and reversal of temporary
differences 573)( 14,955)(
Total deferred income tax 573)( 14,955)(
Income tax expense 88,082$ 55,000$
~33~
(27) Earnings per share
Effective January 1, 2008, as employees’ compensation could be distributed in the form of stock,
the diluted EPS computation shall include those estimated shares that would be increased from
employees’ stock compensation issuance in the weighted-average number of common shares
outstanding during the reporting year, which take into account the dilutive effects of stock bonus on
potential common shares. Whereas, basic EPS shall be calculated based on the weighted-average
number of common shares outstanding during the reporting year that include the shares of
employees’ stock compensation for the appropriation of prior year earnings, which have already
been resolved at the stockholders’ meeting held in the reporting year. Since capitalisation of
employees’ compensation no longer belongs to distribution of stock dividends, the calculation of
basic EPS and diluted EPS for all periods presented shall not be adjusted retroactively.
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent 1,379,208$ 508,095 2.71$
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 1,379,208$ 508,095
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 8,608
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares 1,379,208$ 516,703 2.67$
Amount after
tax
Weighted average number
of ordinary shares
outstanding (shares in
thousands)
Earnings per
share
(in dollars)
For the three-month period ended March 31, 2019
~34~
(28) Supplemental cash flow information
Investing activities with partial cash payments
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent 840,660$ 506,542 1.66$
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent 840,660$ 506,542
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 8,909
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares 840,660$ 515,451 1.63$
Amount after
tax
Weighted average number
of ordinary shares
outstanding (shares in
thousands)
Earnings per
share
(in dollars)
For the three-month period ended March 31, 2018
For the three-month period
ended March 31, 2019
For the three-month period
ended March 31, 2018
Purchase of property, plant and
equipment 98,368$ 217,704$
Add: Opening balance of payable on
equipment 110,401 33,141
Less: Ending balance of payable on
equipment 19,346)( 152,799)(
Cash paid during the period 189,423$ 98,046$
For the three-month period
ended March 31, 2019
For the three-month period
ended March 31, 2018
Purchase of intangible assets 667,741$ 333,337$
Add: Opening balance of payable on
software and intellectual property 684,438 650,649
Less: Ending balance of payable on
software and intellectual property 763,844)( 571,335)(
Cash paid during the period 588,335$ 412,651$
~35~
(29) Changes in liabilities from financing activities
7. RELATED PARTY TRANSACTIONS
(1) Parent and ultimate controlling party
The ultimate controlling party of the Group is the Company.
(2) Names of related parties and relationship
(3) Significant related party transactions and balances
A. Operating revenue
Goods are sold based on the price lists in force and terms that would be available to third parties,
and the general collection term was 30 ~ 60 days after monthly billings.
Short-term
borrowings
Guarantee
deposits
received
Liabilities from
financing activities-
gross
At January 1, 2019 14,526,311$ 4,887$ 14,531,198$
Changes in cash flow from financing
activities 753,689 1,494)( 752,195
At March 31, 2019 15,280,000$ 3,393$ 15,283,393$
Short-term
borrowings
Guarantee
deposits
received
Liabilities from
financing activities-
gross
At January 1, 2018 18,052,624$ 5,165$ 18,057,789$
Changes in cash flow from financing
activities 4,134,304)( 480 4,133,824)(
At March 31, 2018 13,918,320$ 5,645$ 13,923,965$
Names of related parties Relationship with the Company
G.M.I Technology Inc. Other related party
Actions Semiconductor Co., Ltd. Other related party
C-Media Electronics Inc. Other related party
Greatek Electronics Inc. Other related party
For the three-month period
ended March 31, 2019
For the three-month periods
ended March 31, 2018
Sales of goods﹕
Other related parties
G.M.I Technology Inc. 2,391,935$ 1,903,089$
Others 65,374 83,057
2,457,309$ 1,986,146$
~36~
B. Processing cost
Processing cost is paid to associates on normal commercial terms and conditions, and the general
payment term was 49 ~ 69 days after monthly billings.
C. Receivables from related parties
Aforementioned receivables were 30 ~ 60 days after monthly billings. The receivables from
related parties arise mainly from sale transactions. The receivables are unsecured in nature and
bear no interest.
D. Payables to related parties:
The payment term above was 69 days after monthly billings. The payables to related parties arise
mainly from processing cost. The payables bear no interest.
E. Other transactions and other (receivables) payables:
The payment term above was 49 days after monthly billings; collection term was 30 ~ 60 days
after monthly billings.
For the three-month period
ended March 31, 2019
For the three-month period
ended March 31, 2018
Greatek Electronics Inc. 359,338$ 258,311$
March 31, 2019 December 31, 2018 March 31, 2018
Accounts receivable﹕
Other related parties
G.M.I Technology Inc. 1,553,355$ $ 1,718,808 $ 1,224,619
Other 42,413 53,263 32,156
1,595,768$ 1,772,071$ 1,256,775$
March 31, 2019 December 31, 2018 March 31, 2018
Accounts payable﹕
Greatek Electronics Inc. 286,894$ 249,869$ 255,349$
Ending Ending
Amount balance Amount balance
Other related parties-
Sales commissions 102,207$ 58,949$ 74,985$ 43,693$
Technical royalty revenue 1,371)($ -$ 968)($ -$
For the three-month period
ended March 31, 2019
For the three-month period
ended March 31, 2018
~37~
(4) Key management compensation
8. PLEDGED ASSETS
The Group’s assets pledged as collateral are as follows:
9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS
(1) Contingencies
None.
(2) Operating lease agreements
The Group leases land and office buildings for operational needs under non-cancellable operating
lease agreements. The lease terms are between 2019 and 2027. Most of the lease agreements are
renewable at the market price at the end of the lease period. The Group recognised rental expense
of $17,106 for these leases in profit or loss for the three-month period ended March 31, 2018.
The future aggregate minimum lease payments under non-cancellable operating leases are as
follows:
10. SIGNIFICANT DISASTER LOSS
None.
11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
None.
For the three-month
period ended
March 31, 2019
For the three-month
period ended
March 31, 2018
Salaries and other short-term employee benefits 41,755$ 38,996$
Post-employment benefits 655 623
Total 42,410$ 39,619$
Pledged asset March 31, 2019 December 31, 2018 March 31, 2018 Purposes
Time deposits
(shown in
financial assets
at amortised cost
non–current) 30,287$ 30,270$ 30,000$
Guarantee for customs
duties for the importation
of materials
" 35,896 35,789 35,324
Guarantee for leasing land
and office in Science Park
66,183$ 66,059$ 65,324$
Book value
December 31, 2018 March 31, 2018
No later than one year 69,071$ 61,192$
Later than one year but not later
than five years
149,106 169,341
Later than five years 39,910 43,296
258,087$ 273,829$
~38~
12. OTHERS
(1) Capital management
There have been no significant changes as of March 31, 2019. Please refer to Note 12 in the
consolidated financial statements for the year ended December 31, 2018.
(2) Financial instruments
A. Financial instruments by category
March 31, 2019 December 31, 2018 March 31, 2018
Financial assets
Financial assets at fair value
through profit or loss
Financial assets mandatorily
measured at fair value through
profit or loss 1,055,009$ 1,321,103$ 787,032$
Financial assets at fair value through
other comprehensive income
Designation of equity instrument 1,647,527$ 1,651,072$ 1,700,225$
March 31, 2019 December 31, 2018 March 31, 2018
Financial assets at amortised cost/
Receivables
Cash and cash equivalents 3,537,440$ 4,309,651$ 3,091,308$
Financial assets at amortised cost 33,937,857 31,286,209 27,498,392
Accounts receivable (including
related parties)
7,661,118 7,419,793 6,404,511
Other receivables (including related
parties)
827,097 657,190 536,252
Refundable deposits 29,769 28,573 22,274
45,993,281$ 43,701,416$ 37,552,737$
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings 15,280,000$ 14,526,311$ 13,918,320$
Notes payable 7,264 8,657 7,229
Accounts payable (including related
parties) 7,236,463 5,885,855 5,058,668
Other accounts payable (including
related parties) 6,939,566 7,611,255 5,264,899
Lease liabilities 1,033,377 - -
Guarantee deposits received 3,393 4,887 5,645
30,500,063$ 28,036,965$ 24,254,761$
~39~
B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including
foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
(b) Risk management is carried out by a finance division (Group finance) under policies
approved by the Board of Directors. Group finance identifies, evaluates and hedges
financial risks in close co-operation with the Group’s operating units.
C. Significant financial risks and degrees of financial risks
(a) Market risk
Foreign exchange risk
i. The Group operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the USD and RMB. Foreign
exchange risk arises from future commercial transactions, recognised assets and liabilities
and net investments in foreign operations.
ii. Management has set up a policy to require the Group to manage its foreign exchange
risk against its functional currency. The Group is required to hedge its entire foreign
exchange risk exposure with the Group finance.
iii. The Group’s businesses involve some functional currency operations (the Company’s
functional currency: NTD;other certain subsidiaries’ functional currency: USD and
RMB). The information on assets and liabilities denominated in foreign currencies whose
values would be materially affected by the exchange rate fluctuations is as follows:
Foreign
currency
amount
(In thousands) Exchange rate
Book value
(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 200,247$ 30.825 6,172,602$
Non-monetary items
USD:NTD 1,224,125 30.825 37,733,667
Financial liabilities
Monetary items
USD:NTD 131,196 30.825 4,044,103
March 31, 2019
~40~
Foreign
currency
amount
(In thousands) Exchange rate
Book value
(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 179,859$ 30.733 5,527,618$
CNY:USD 71,029 0.1456 317,942
Non-monetary items
USD:NTD 1,159,786 30.733 35,643,714
Financial liabilities
Monetary items
USD:NTD 134,264 30.733 4,126,322
December 31, 2018
Foreign
currency
amount
(In thousands) Exchange rate
Book value
(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 181,416$ 29.12 5,282,831$
CNY:USD 336,791 0.1594 1,563,347
Non-monetary items
USD:NTD 1,147,617 29.12 33,418,620
Financial liabilities
Monetary items
USD:NTD 123,578 29.12 3,598,583
March 31, 2018
~41~
The exchange gain, including realised and unrealised arising from significant foreign
exchange variation on the monetary items held by the Group for the three-month periods
ended March 31, 2019 and 2018, amounted to $4,327 and $79,084, respectively.
Analysis of foreign currency market risk arising from significant foreign exchange
variation:
Degree of variation
Effect on
profit or loss
Effect on other
comprehensive
income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 1% 61,726$ -$
Non-monetary items
USD:NTD 1% - 377,337
Financial liabilities
Monetary items
USD:NTD 1% 40,441)( -
For the three-month period ended March 31, 2019
Sensitivity analysis
Degree of variation
Effect on
profit or loss
Effect on other
comprehensive
income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD 1% 52,828$ -$
CNY:USD 1% 15,633 -
Non-monetary items
USD:NTD 1% - 334,186
Financial liabilities
Monetary items
USD:NTD 1% 35,986)( -
For the three-month period ended March 31, 2018
Sensitivity analysis
~42~
Price risk
i. The Group’s equity securities, which are exposed to price risk, are the held financial assets
at fair value through profit or loss and financial assets at fair value through other
comprehensive income.
ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks.
The prices of equity securities would change due to the change of the future value of
investee companies. If the prices of these equity securities had increased/decreased by
10% with all other variables held constant, post-tax profit for the three-month periods
ended March 31, 2019 and 2018 would have increased/decreased by $90 and $3,956,
respectively, as a result of gains/losses on equity securities classified as at fair value
through profit or loss. Other components of equity would have increased/decreased by
$685 and $4,291, respectively, as a result of gains/losses on equity securities classified as
at fair value through other comprehensive income.
Cash flow and fair value interest rate risk
The Group has no material interest rate risk.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients
or counterparties of financial instruments on the contract obligations. The main factor is
that counterparties could not repay in full the accounts receivable based on the agreed terms,
and the contract cash flows of financial assets at amortised cost and at fair value through
other comprehensive income.
ii. The Group manages their credit risk taking into consideration the entire group’s concern.
According to the Group’s credit policy, each local entity in the Group is responsible for
managing and analysing the credit risk for each of their new clients before standard
payment and delivery terms and conditions are offered. Internal risk control assesses the
credit quality of the customers, taking into account their financial position, past experience
and other factors.
iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract
payments are past due over 90 days.
iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been
a significant increase in credit risk on that instrument since initial recognition:
If the contract payments were past due over 30 days based on the terms, there has been a
significant increase in credit risk on that instrument since initial recognition.
v. The following indicators are used to determine whether the credit impairment of debt
instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial
reorganization due to their financial difficulties;
~43~
(ii) The disappearance of an active market for that financial asset because of financial
difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause
a default.
vi. The Group classifies customers’ accounts receivable, contract assets and rents receivable
in accordance with customer types. The Group applies the modified approach using
provision matrix to estimate expected credit loss under the provision matrix basis.
vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be
recovered, after initiating recourse procedures. However, the Group will continue
executing the recourse procedures to secure their rights.
viii. The Group used the forecastability of semiconductor industry research report to adjust
historical and timely information to assess the default possibility of accounts receivable.
On March 31, 2019, December 31, 2018 and March 31, 2018, the provision matrix are as
follows:
.
Not past due
1~90 days
past due
180 days
past due Total
At March 31, 2019
Expected loss rate 0.2%~1% 0.2%~1% 100%
Total book value 7,704,052$ 10,655$ 36$ 7,714,743$
Loss allowance 53,497$ 92$ 36$ 53,625$
Not past due
1~90 days
past due
180 days
past due Total
At December 31, 2018
Expected loss rate 0.2%~1% 0.2%~1% 100%
Total book value 7,460,264$ 17,665$ 36$ 7,477,965$
Loss allowance 58,031$ 105$ 36$ 58,172$
Not past due
1~90 days
past due
180 days
past due Total
At March 31, 2018
Expected loss rate 0.2%~1% 0.2%~1% 100%
Total book value 6,447,665$ 4,310$ 37$ 6,452,012$
Loss allowance 47,458$ 6$ 37$ 47,501$
~44~
ix. Movements in relation to the Group applying the modified approach to provide loss
allowance for accounts receivable are as follows:
Because of macroeconomics and credit enhancement, the impairment loss for the three-
month periods ended March 31, 2019 and 2018, decreased by $4,560 and $12,291,
respectively.
x. For financial assets at amortised cost, the credit rating levels are presented below:
Loss allowance for
accounts receivable
At January 1 58,172$
Current changes 4,547)(
At March 31 53,625$
2019
Loss allowance for
accounts receivable
At January 1_IAS 39 59,792$
Adjustments under new standards -
At January 1_IFRS 9 59,792
Current changes 12,291)(
At March 31 47,501$
2018
Significant
increase in
credit risk
Impairment
of credit Total
Financial assets at
amortised cost
Group 1 33,937,857$ -$ -$ 33,937,857$
March 31, 2019
12 months
Lifetime
Significant
increase in
credit risk
Impairment
of credit Total
Financial assets at
amortised cost
Group 1 31,286,209$ -$ -$ 31,286,209$
December 31, 2018
12 months
Lifetime
~45~
Group 1: Financial institutions of credit rating ‘A’.
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated
by Group finance. Group finance monitors rolling forecasts of the Group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs while
maintaining sufficient headroom on its undrawn committed borrowing facilities.
ii. Group finance invests surplus cash in interest bearing current accounts, time deposits,
money market deposits and marketable securities, choosing instruments with
appropriate maturities or sufficient liquidity to provide sufficient head-room as
determined by the above-mentioned forecasts.
iii. The table below analyses the Group’s non-derivative financial liabilities into relevant
maturity groupings based on the remaining period at the balance sheet date to the
contractual maturity date for non-derivative financial liabilities. The amounts disclosed
in the table are the contractual undiscounted cash flows.
Significant
increase in
credit risk
Impairment
of credit Total
Financial assets at
amortised cost
Group 1 27,498,392$ -$ -$ 27,498,392$
March 31, 2018
12 months
Lifetime
Non-derivative financial liabilities:
March 31, 2019 Less than 1
year
Between 1
and 5 years Over 5 years
Short-term loans 15,280,000$ -$ -$
Notes payable 7,264 - -
Accounts payable (including related
parties)
7,236,463 - -
Other payables (including related parties) 2,146,987 - -
Lease liabilities 70,697 278,885 683,795
Guarantee deposits received - - 3,393
~46~
iv. The Group does not expect the timing of occurrence of the cash flows estimated through
the maturity date analysis will be significantly earlier, nor expect the actual cash flow
amount will be significantly different.
(3) Fair value information
A. The different levels that the inputs to valuation techniques are used to measure fair value of
financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. A market is regarded as active where a
market in which transactions for the asset or liability take place with sufficient
frequency and volume to provide pricing information on an ongoing basis. The fair
value of the Group’s investment in listed stocks and beneficiary certificates is
included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly. The fair value of the Group’s investment
is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment
in equity investment without active market is included in Level 3.
Non-derivative financial liabilities:
December 31, 2018 Less than 1
year
Between 1
and 5 years Over 5 years
Short-term loans 14,526,311$ -$ -$
Notes payable 8,657 - -
Accounts payable (including related
parties)
5,885,855 - -
Other payables (including related parties) 2,336,619 - -
Guarantee deposits received - - 4,887
Non-derivative financial liabilities:
March 31, 2018 Less than 1
year
Between 1
and 5 years Over 5 years
Short-term loans 13,918,320$ -$ -$
Notes payable 7,229 - -
Accounts payable (including related
parties)
5,058,668 - -
Other payables (including related parties) 1,749,728 - -
Guarantee deposits received - - 5,645
~47~
B. Fair value information of investment property at cost is provided in Note 6(10).
C. The related information of financial and non-financial instruments measured at fair value by
level on the basis of the nature, characteristics and risks of the assets is as follows:
(a) The related information of nature of the assets is as follows:
(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level
1) are listed below by characteristics:
March 31, 2019 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurement
Financial assets at fair value
through profit or loss-current 1,055,009$ -$ -$ 1,055,009$
Financial assets at fair value
through other comprehensive
income
Equity securities 521,993 - 1,125,534 1,647,527
Total 1,577,002$ -$ 1,125,534$ 2,702,536$
December 31, 2018 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurement
Financial assets at fair value
through profit or loss-current 1,321,103$ -$ -$ 1,321,103$
Financial assets at fair value
through other comprehensive
income
Equity securities 592,935 - 1,058,137 1,651,072
Total 1,914,038$ -$ 1,058,137$ 2,972,175$
March 31, 2018 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurement
Financial assets at fair value
through profit or loss-current 787,032$ -$ -$ 787,032$
Financial assets at fair value
through other comprehensive
income
Equity securities 648,723 - 1,051,502 1,700,225
Total 1,435,755$ -$ 1,051,502$ 2,487,257$
~48~
ii. Except for financial instruments with active markets, the fair value of other financial
instruments is measured by using valuation techniques or by reference to counterparty
quotes. The fair value of financial instruments measured by using valuation techniques
can be referred to current fair value of instruments with similar terms and characteristics
in substance, discounted cash flow method or other valuation methods, including
calculated by applying model using market information available at the consolidated
balance sheet date.
iii. The output of valuation model is an estimated value and the valuation technique may
not be able to capture all relevant factors of the Group’s financial and non-financial
instruments. Therefore, the estimated value derived using valuation model is adjusted
accordingly with additional inputs.
D. For the three-month periods ended March 31, 2019 and 2018, there was no transfer between
Level 1 and Level 2.
E. The following chart is the movement of Level 3 for the three-month periods ended March
31, 2019 and 2018:
F. For the three-month periods ended March 31, 2019 and 2018, there was no transfer into or
out from Level 3.
Listed
shares
Closed-
end
fund
Opened-
end
fund
Government
bond
Corporate
bond
Convertible
(exchangeable)
bond
Market quoted
price
Closing
price
Closing
price
Net asset
value
Translation
price
Weighted
average
quoted
price
Closing price
Non-derivative equity instrument
At January 1 1,058,137$
Gains recognised in other
comprehensive income 67,397
At March 31 1,125,534$
2019
Non-derivative equity instrument
At January 1 312,684$
Modified retrospective adjustment 766,919
Losses recognised in other
comprehensive income 28,101)(
At March 31 1,051,502$
2018
~49~
G. The finance division is in charge of valuation procedures for fair value measurements being
categorised within Level 3, which is to verify independent fair value of financial instruments.
Such assessment is to ensure the valuation results are reasonable by applying independent
information to make results close to current market conditions, confirming the resource of
information is independent, reliable and in line with other resources and represented as the
exercisable price, updating inputs used to the valuation model and making any other necessary
adjustments to the fair value.
H. The following is the qualitative information of significant unobservable inputs and sensitivity
analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair
value measurement:
Fair value at
March 31,
2019
Valuation
technique
Significant
unobservable
input
Range
(weighted
average)
Relationship of
inputs to fair value
Non-derivative
equity
instrument:
Unlisted
shares
$ 70,785 Market
comparable
companies
Price to book
ratio multiple
2.81 The higher the
multiple, the higher
the fair value
〃 28,000 The last
transaction price
of the non-active
market
Not applicable
-
Not applicable
Private equity
fund
investment
1,026,749 Net asset
value
Not applicable - Not applicable
Fair value at
December 31,
2018
Valuation
technique
Significant
unobservable
input
Range
(weighted
average)
Relationship of
inputs to fair value
Non-derivative
equity
instrument:
Unlisted
shares
$ 117,986 Market
comparable
companies
Price to book
ratio multiple
2.56 The higher the
multiple, the higher
the fair value
〃 28,000 The last
transaction price
of the non-active
market
Not applicable
-
Not applicable
Private equity
fund
investment
912,151 Net asset
value
Not applicable - Not applicable
~50~
I. The Group has carefully assessed the valuation models and assumptions used to measure fair
value; therefore, the fair value measurement is reasonable. However, use of different valuation
models or assumptions may result in different measurement. The following is the effect of
profit or loss or of other comprehensive income from financial assets and liabilities categorised
within Level 3 if the inputs used to valuation models have changed:
Fair value at
March 31,
2018
Valuation
technique
Significant
unobservable
input
Range
(weighted
average)
Relationship of
inputs to fair value
Non-derivative
equity
instrument:
Unlisted
shares
$ 251,570 Market
comparable
companies
Price to book
ratio multiple
3.12 The higher the
multiple, the higher
the fair value
Private equity
fund
investment
799,932 Net asset
value
Not applicable - Not applicable
Input Change
Favourable
Change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial assets
Equity instrumentPrice to
book ratio
multiple
± 1% -$ -$ 1,356$ 1,356)($
March 31, 2019
Recognised in profit or
loss
Recognised in other
comprehensive income
Input Change
Favourable
Change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial assets
Equity instrumentPrice to
book ratio
multiple
± 1% -$ -$ 1,232$ 1,232)($
December 31, 2018
Recognised in profit or
loss
Recognised in other
comprehensive income
~51~
13. SUPPLEMENTARY DISCLOSURES
(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates
and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or
20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-
in capital or more: Please refer to table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more:
Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in
Mainland China): Please refer to table 7.
(3) Information on investments in Mainland China
A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee
companies in the Mainland Area: Please refer to table 9.
Input Change
Favourable
Change
Unfavourable
change
Favourable
change
Unfavourable
change
Financial assets
Equity instrumentPrice to
book ratio
multiple
± 1% -$ -$ 1,254$ 1,254)($
March 31, 2018
Recognised in profit or
loss
Recognised in other
comprehensive income
~52~
14. SEGMENT INFORMATION
1. General information
The Group operates business only in a single industry. The Chief Operating Decision-Maker, who
allocates resources and assesses performance of the Group as a whole, has identified that the Group
has only one reportable operating segment.
2. Measurement of segment information
The Chief Operating Decision-Maker assesses the performance of the operating segments based
on the consolidated financial statements. The policy of operating segments is the same as that
described in Note 4.
3. Information on segment profit(loss), assets and liabilities
4. Reconciliation for segment profit (loss)
None.
For the three-month period ended March 31, 2019
Amount
Revenue from external customers 12,834,642$
Inter-segment revenue -$
Segment income 1,379,233$
Total segment assets 62,607,373$
For the three-month period ended March 31, 2018
Amount
Revenue from external customers 10,626,366$
Inter-segment revenue -$
Segment income 840,660$
Total segment assets 51,075,844$
Item Value
0
Realtek
Semiconductor
Corporation
Leading Enterprises
Limited
Other receivables-
related partiesY 924,750$ 924,750$ -$ - 2 -$ Operations -$ None -$ 2,463,729$ 9,854,917$ None
0
Realtek
Semiconductor
Corporation
Realtek Singapore
Private Limited
Other receivables-
related partiesY 1,849,500 1,849,500 - - 2 - Operations - None - 2,463,729 9,854,917 None
0
Realtek
Semiconductor
Corporation
Talent Eagle
Enterprise Inc.
Other receivables-
related partiesY 1,849,500 1,849,500 - - 2 - Operations - None - 2,463,729 9,854,917 None
0
Realtek
Semiconductor
Corporation
Amber Universal
Inc.
Other receivables-
related partiesY 616,500 616,500 369,900 2.90 2 - Operations - None - 2,463,729 9,854,917 None
0
Realtek
Semiconductor
Corporation
Bluocean Inc.Other receivables-
related partiesY 1,849,500 1,849,500 1,837,170 2.90 2 - Operations - None - 2,463,729 9,854,917 None
1Leading Enterprises
Limited
Realtek
Semiconductor
(Shen Zhen) Corp.
Other receivables-
related partiesY 154,125 154,125 - - 2 - Operations - None - 9,854,917 9,854,917 None
1Leading Enterprises
LimitedBluocean Inc.
Other receivables-
related partiesY 6,165,000 6,165,000 - - 2 - Operations - None - 9,854,917 9,854,917 None
1Leading Enterprises
Limited
Talent Eagle
Enterprise Inc.
Other receivables-
related partiesY 6,165,000 6,165,000 1,795,051 2.90 2 - Operations - None - 9,854,917 9,854,917 None
2 Amber Universal Inc.Talent Eagle
Enterprise Inc.
Other receivables-
related partiesY 3,082,500 3,082,500 - - 2 - Operations - None - 9,854,917 9,854,917 None
Reason for
short-term
financial
Allowance
for doubtful
accounts
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Loans to others
For the three-month period ended March 31, 2019
Table 1 Expressed in thousands of NTD
(Except as otherwise indicated)
Maximum
outstanding balance
during the three-
month period ended
March 31,
2019
(Note 3)
Balance at
March
31, 2019
Actual amount
drawn down
No
(Note 1) Creditor Borrower
General ledger
account
Is a related
party
Collateral
Limit on loans
granted to
a single party
Ceiling on total loans
granted
(Note 2) FootnoteInterest rate
Nature of
loan
Amount of
transactions
with the
borrower
Table 1 Page 1
Item Value
Reason for
short-term
financial
Allowance
for doubtful
accounts
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Loans to others
For the three-month period ended March 31, 2019
Table 1 Expressed in thousands of NTD
(Except as otherwise indicated)
Maximum
outstanding balance
during the three-
month period ended
March 31,
2019
(Note 3)
Balance at
March
31, 2019
Actual amount
drawn down
No
(Note 1) Creditor Borrower
General ledger
account
Is a related
party
Collateral
Limit on loans
granted to
a single party
Ceiling on total loans
granted
(Note 2) FootnoteInterest rate
Nature of
loan
Amount of
transactions
with the
borrower
2 Amber Universal Inc. Bluocean Inc.Other receivables-
related partiesY 1,541,250$ 1,541,250$ 369,900$ 2.90 2 -$ Operations -$ None -$ 9,854,917$ 9,854,917$ None
3 Cortina Access, Inc.Leading Enterprises
Limited
Other receivables-
related partiesY 924,750 924,750 693,563 2.72 2 - Operations - None - 9,854,917 9,854,917 None
4Realtek Singapore
Private Limited
Realsil
Microelectronics
Corp.
Other receivables-
related partiesY 924,750 924,750 - - 2 - Operations - None - 9,854,917 9,854,917 None
5
Realtek Investment
Singapore Private
Limited
Realtek Singapore
Private Limited
Other receivables-
related partiesY 3,082,500 3,082,500 741,341 2.90 2 - Operations - None - 9,854,917 9,854,917 None
6
Realsil
Microelectronics
Corp.
RayMX
Microelectronics
Corp.
Other receivables-
related partiesY 366,952 366,952 - - 2 - Operations - None - 9,854,917 9,854,917 None
6
Realsil
Microelectronics
Corp.
Suzhou Hongwei
Microelectronic
Corp.
Other receivables-
related partiesY 366,952 366,952 - - 2 - Operations - None - 9,854,917 9,854,917 None
Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: The Company’s “Procedures for Provision of Loans” are as follows:
(1) Ceiling on total loans granted by the Company to all parties is 40% of the Company’s net assets value as per its most recent financial statements.
(2) Limit on loans to a single party with business transactions is the business transactions occurred between the creditor and borrower in the current year. The business transaction amount is the higher of purchasing and selling during current year on the year of financing.
(3) For companies needing for short-term financing, the cumulative lending amount may not exceed 40% of the borrowing company’s net assets based on its latest financial statements audited or reviewed by independent accountants.
The amount the Company or its subsidiaries lend to an individual entity may not exceed 10% of the Company’s or subsidiary’s net assets based on its latest financial statements audited or reviewed by independent accountants.
Note 3: The authorized limit is approved by the Board of Directors.
For the foreign companies which the Company holds 100% of the voting rights directly or indirectly, limit on loans is not restricted as stipulated in the above item (3). However, the ceiling on total loans and limit on loans to a single party may not exceed 40% of the Company’s net assets
based on its latest financial statements audited or reviewed by independent accountants.
Table 1 Page 2
Company name
Relationship
with the
endorser/
guarantor
(Note 2)
0
Realtek
Semiconductor
Corporation
Realtek Singapore
Private Limited2 12,318,646$ 2,463,729$ 2,463,729$ -$ -$ 0.10 12,318,646$ Y N N
0
Realtek
Semiconductor
Corporation
Leading Enterprises
Limited2 12,318,646 7,391,188 7,391,188 - - 0.30 12,318,646 Y N N
0
Realtek
Semiconductor
Corporation
RayMX
Microelectronics
Corp.
2 12,318,646 739,119 739,119 - - 0.03 12,318,646 Y N Y
1
Leading
Enterprises
Limited
Realsil
Microelectronics
Corp.
2 12,318,646 616,500 616,500 - - 0.03 12,318,646 N N Y
2
Realsil
Microelectronics
Corp.
RayMX
Microelectronics
Corp.
2 12,318,646 616,500 616,500 - - 0.03 12,318,646 N N Y
Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:
(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Provision of endorsements and guarantees to others
For the three-month period ended March 31, 2019
Table 2 Expressed in thousands of NTD
(Except as otherwise indicated)
Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities.And all other events involve endorsements and
guarantees should be included in the balance of outstanding endorsements and guarantees.
Note 3: Ceiling on total endorsements/guarantees granted by the Company and subsidiaries is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent accountants, and limit on endorsements/guarantees to a
single party is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent accountants.
Outstanding
endorsement/
guarantee
amount at
March 31,
2019
(Note 5)
Actual amont
drawn down
(Note 6)
Number
(Note 1)
Endorser/
guarantor
Party being
endorsed/guaranteed
Limited on
endorsements/
guarantees
provided for a
single party
(Note 3)
Maximum
outstanding
endorsement/
amount as of
March 31,
2019
(Note 4)
Provision of
endorsements/
guarantees to
the party in
Mainland
China
(Note 7) Footnote
Amount of
endorsements/
gurantees
secured with
collateral
Ratio of accumulated
endorsement/ guarantee
amount to net
asset value of
the endorser/ guarantor
company
Ceiling on total
amount of
endorsements/
guarantees
provided
(Note 3)
Provision of
endorsements/
guarantees by
parent
company to
subsidiary
(Note 7)
Provision of
endorsements/
guarantees by
subsidiary to
parent
company
(Note 7)
Table 2 Page 1
Number of shares
Book value
(Note 3) Ownership (%) Fair value
Realtek Semiconductor Corporation C-media Electronics Inc. - Common stock Other related parties Financial assets at fair value through
profit or loss
1,623,501 $ 28,492 2.05% $ 28,492
Realtek Semiconductor Corporation Technology Partner Venture Capital
Corporation - Common stock
Other related parties Financial assets at fair value through
other comprehensive income
283,791 936 16.02% 936
Realking Investment Limited Compal broadband networks Inc. - Common
stock
None Financial assets at fair value through
other comprehensive income
3,575,000 127,628 5.35% 127,628
Realsun Investment Co., Ltd. Shieh-Yong Investment Co., Ltd. -
Common stock
None Financial assets at fair value through
other comprehensive income
23,124,000 186,158 3.03% 186,158
Realsun Investment Co., Ltd. Compal broadband networks Inc. - Common
stock
None Financial assets at fair value through
other comprehensive income
3,575,000 127,628 5.35% 127,628
Leading Enterprises Limited Fortemedia Inc. - Common stock None Financial assets at fair value through
other comprehensive income
8,623,301 52,290 6.89% 52,290
Leading Enterprises Limited Starix Technology, Inc.-Preferred stock None Financial assets at fair value through
other comprehensive income
5,000,000 18,495 - 18,495
Leading Enterprises Limited Octtasia Investment Holding Inc. - Common
stock
None Financial assets at fair value through
other comprehensive income
9,000,000 550,520 12.49% 550,520
Amber Universal Inc. Octtasia Investment Holding Inc. - Common
stock
None Financial assets at fair value through
other comprehensive income
4,726,836 289,135 6.56% 289,135
Hung-wei Venture Capital Co., Ltd. United Microelectronics Corporation -
Common stock
None Financial assets at fair value through
other comprehensive income
336,346 3,918 - 3,918
Hung-wei Venture Capital Co., Ltd. C-media Electronics Inc.- Common stock Other related parties Financial assets at fair value through
profit or loss
2,274,875 39,924 2.88% 39,924
Hung-wei Venture Capital Co., Ltd. Greatek Electroninc Inc. - Common stock Other related parties Financial assets at fair value through
other comprehensive income
5,823,602 247,503 1.05% 247,503
Hung-wei Venture Capital Co., Ltd. Subtron technology Co., Ltd - Common
stock
None Financial assets at fair value through
other comprehensive income
1,093,968 15,316 0.33% 15,316
Hung-wei Venture Capital Co., Ltd. Embestor Technology Inc. -
Common stock
Other related parties Financial assets at fair value through
other comprehensive income
2,800,000 28,000 12.17% 28,000
Realsil Microelectronics Corp. Tianhong Money Fund None Financial assets at fair value through
profit or loss
34,515,538 158,320 - 158,320
Realsil Microelectronics Corp. China Universal Cash Premium Money
Market Fund
None Financial assets at fair value through
profit or loss
20,236,253 92,822 - 92,822
Realsil Microelectronics Corp. Zhou Zhoufa Stable Fund None Financial assets at fair value through
profit or loss
848,824 4,760 - 4,760
Realsil Microelectronics Corp. Zhou Zhoufa Balanced Fund None Financial assets at fair value through
profit or loss
23,815,790 130,499 - 130,499
Realsil Microelectronics Corp. Tian Tianjin Aggressive Fund None Financial assets at fair value through
profit or loss
44,815,546 247,501 - 247,501
Footnote
(Note 4)Securities held by
Marketable securies
(Note 1)
Relationship with the
securities issuer(Note 2)
General
ledger account
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
March 31, 2019
Table 3 Expressed in thousands of NTD
As of March 31, 2019
Table 3 Page 1
Number of shares
Book value
(Note 3) Ownership (%) Fair value
Footnote
(Note 4)Securities held by
Marketable securies
(Note 1)
Relationship with the
securities issuer(Note 2)
General
ledger account
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
March 31, 2019
Table 3 Expressed in thousands of NTD
As of March 31, 2019
Realsil Microelectronics Corp. Tian Tianjin Financial Fund B None Financial assets at fair value through
profit or loss
10,577,415 $ 61,554 - $ 61,554
Realtek Semiconductor (Shen Zhen)
Corp.
Zhou Zhoufa Fund None Financial assets at fair value through
profit or loss
5,038,549 27,781 - 27,781
Realtek Semiconductor (Shen Zhen)
Corp.
Tian Tianjin Stable Fund None Financial assets at fair value through
profit or loss
14,874,042 83,891 - 83,891
Realtek Semiconductor (Shen Zhen)
Corp.
Tian Tianjin Aggressive Fund None Financial assets at fair value through
profit or loss
8,249,551 45,556 - 45,556
Realtek Semiconductor (Shen Zhen)
Corp.
Harvest Money Market None Financial assets at fair value through
profit or loss
2,007,572 9,209 - 9,209
Realtek Semiconductor (Shen Zhen)
Corp.
Great Wall Money Market Fund None Financial assets at fair value through
profit or loss
515,227 2,363 - 2,363
Cortina Network Systems Shanghai
Co. Ltd.
ICBC - Money Fund None Financial assets at fair value through
profit or loss
2,605,746 11,952 - 11,952
Cortina Network Systems Shanghai
Co. Ltd.
Zhou Zhoufa Stable Fund None Financial assets at fair value through
profit or loss
6,546,951 36,703 - 36,703
Cortina Network Systems Shanghai
Co. Ltd.
Tian Tianjin Stable Fund None Financial assets at fair value through
profit or loss
5,733,380 32,331 - 32,331
Cortina Network Systems Shanghai
Co. Ltd.
Tian Tianjin Aggressive Fund None Financial assets at fair value through
profit or loss
7,488,743 41,351 - 41,351
Bluocean Inc. CyWeeMotion Group Limited None Financial assets at fair value through
other comprehensive income
4,800,000 - 6.59% -
Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instrument'.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or
amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in
the footnote if the securities presented herein have such conditions.
Table 3 Page 2
Purchase
(sales) Amount
Percentage of total
purchase
(sales) Credit term Unit price Credit term Balance
Percentage of
total
notes/accounts
receivable
(payable)
Realtek Semiconductor
Corporation
G.M.I Technology Inc. Other related parties (Sales) 1,002,256)($ (8%) Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
676,720$ 9%
Realtek Singapore Private
Limited
G.M.I Technology Inc. Other related parties (Sales) 1,364,369)( (11%) Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
868,601 11%
Realtek Semiconductor
Corporation
Greatek Electronics Inc. Other related parties Purchase 236,870 3% Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
248,586)( (3%)
Realtek Singapore Private
Limited
Greatek Electronics Inc. Other related parties Purchase 122,468 2% Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
Approximately
the same with
third party
transactions
38,308)( (2%)
Note 1: The terms for related parties are different from third parties. Differences in transaction terms compared to third party transactions should be explained in unit price and transaction term columns.
FootnotePurchase/seller Counterparty
Relationship with the
counterparty
Transaction
Differences in transaction terms
compared to third party
transactions(Note 1) Notes/accounts receivable(payable)
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more
For the three-month period ended March 31, 2019
Table 4 Expressed in thousands of NTD
Table 4 Page 1
Table 5
Amount Action taken
Realtek Semiconductor Corporation G.M.I Technology Inc. Other related
parties
676,720$ 4.84 $ - - 234,841$ 6,835$
Realtek Singapore Private Limited G.M.I Technology Inc. Other related
parties
868,601 6.79 - - 274,687 1,741
Amount collected
subsequent to the
balance sheet date
Allowance for
doubtful accountsCreditor Counterparty
Relationship with
the counterparty
Balance as at March
31, 2019 Turnover rate
Overdue receivables
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Receivable from related parties reaching NT$100 million 0r 20% of paid-in capital or more
March 31, 2019
Expressed in thousands of NTD
(Except as otherwise indicated)
Table 5 Page 1
Significant inter-company transactions during the reporting periods:
General ledger account Amount Transaction terms
Percentage of consolidated
total operating revenues or
total assets (Note 3)
0 Realtek Semiconductor Corporation Amber Universal Inc. 1 Other receivables $ 369,900Fund lending is in accordance
with loan agreement terms.0.59%
0 〃 Bluocean Inc. 1 Other receivables 1,837,170 〃 2.93%
0 〃 RayMX Microelectronics Corp. 1 Other receivables 91,396
No similar transaction can be
compared with. Transaction
prices and terms are determined
in accordance with mutual
agreement.
0.15%
0 〃 RayMX Microelectronics Corp. 1 Sales revenue 41,191 〃 0.32%
1 Leading Enterprises Limited Talent Eagle Enterprise Inc. 3 Other receivables 1,795,051Fund lending is in accordance
with loan agreement terms.2.87%
1 〃 Bluocean Inc. 3 Interest revenue 14,793 〃 0.12%
1 〃 Realtek Semiconductor (Japan) Corp. 3 Technical service fees 17,323
No similar transaction can be
compared with. Transaction
prices and terms are determined
in accordance with mutual
agreement.
0.13%
2 Amber Universal Inc. Bluocean Inc. 3 Other receivables 369,900Fund lending is in accordance
with loan agreement terms.0.59%
3 Talent Eagle Enterprise Inc. Realtek Semiconductor Corporation 2 Interest expense 11,465 〃 0.09%
4 Realtek Singapore Private Limited Realsil Microelectronics Corp. 3 Technical service fees 334,026
No similar transaction can be
compared with. Transaction
prices and terms are determined
in accordance with mutual
agreement.
2.60%
4 〃 Realsil Microelectronics Corp. 3 Other payables 174,562 〃 0.28%
4 〃 Realtek Semiconductor (Shen Zhen) Corp. 3 Technical service fees 67,160 〃 0.52%
4 〃 Realtek Semiconductor (Shen Zhen) Corp. 3 Other payables 29,997 〃 0.05%
4 〃 Cortina Access, Inc. 3 Technical service fees 56,685 〃 0.44%
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Significant inter-company transactions during the reporting periods
For the three-month period ended March 31, 2019
Table 6 Expressed in thousands of NTD
Table 6 Page 1
Significant inter-company transactions during the reporting periods:
General ledger account Amount Transaction terms
Percentage of consolidated
total operating revenues or
total assets (Note 3)
Number
(Note 1) Company name Counterparty
Relationship
(Note 2)
Transaction
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Significant inter-company transactions during the reporting periods
For the three-month period ended March 31, 2019
Table 6 Expressed in thousands of NTD
4 Realtek Singapore Private Limited Cortina Access, Inc. 3 Other payables $ 34,196
No similar transaction can be
compared with. Transaction
prices and terms are determined
in accordance with mutual
agreement.
0.05%
4 〃 Cortina Network Systems Shanghai Co., Ltd. 3 Technical service fees 25,645 〃 0.20%
4 〃 Cortina Network Systems Shanghai Co., Ltd. 3 Other payables 25,637 〃 0.04%
4 〃 Cortina Systems Taiwan Limited 3 Technical service fees 25,366 〃 0.20%
4 〃 Cortina Systems Taiwan Limited 3 Other payables 15,458 〃 0.02%
4 〃 RayMX Microelectronics Corp. 3 Other receivables 50,150 〃 0.08%
5 Cortina Access, Inc. Leading Enterprises Limited 3 Other receivables 693,563Fund lending is in accordance
with loan agreement terms.1.11%
6 Realtek Investment Singapore Private Limited Realtek Singapore Private Limited 3 Other receivables 741,341 〃 1.18%
6 〃 Realtek Singapore Private Limited 3 Interest revenue 5,996 〃 0.05%
Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer
to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction;
for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on
accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Only transactions above NT$5 million are disclosed. Transactions of related parties are not further disclosed here.
Table 6 Page 2
Balance as at
March 31, 2019
Balance as at
December 31,
2018 Number of shares Ownership (%) Book value
Realtek Semiconductor
Corporation
Leading Enterprises Limited British Virgin
Islands
Investment holdings $ 15,364,105 $ 15,318,249 39,130 100% $ 11,202,952 236,825$ 236,825$ Subsidiary
Realtek Semiconductor
Corporation
Amber Universal Inc. British Virgin
Islands
Investment holdings 4,852,280 4,837,812 41,432 100% 3,267,110 18,462 18,462 Subsidiary
Realtek Semiconductor
Corporation
Realtek Singapore Private
Limited
Singapore ICs manufacturing, design, research,
development, sales, and marketing
2,466,000 2,458,640 80,000,000 89.03% 9,250,813 1,447,331 1,447,331 Subsidiary
Realtek Semiconductor
Corporation
Bluocean Inc. Cayman
Islands
Investment holdings 3,392,291 3,382,167 110,050,000 100% 3,474,476 23,551 23,551 Subsidiary
Realtek Semiconductor
Corporation
Talent Eagle Enterprise Inc. Cayman
Islands
Investment holdings 3,517,133 3,506,635 114,100,000 100% 2,848,987 76,136)( 76,136)( Subsidiary
Realtek Semiconductor
Corporation
Realtek Investment Singapore
Private Limited
Singapore Investment holdings 6,165,000 6,146,600 200,000,000 100% 6,499,661 53,427 53,427 Subsidiary
Realtek Semiconductor
Corporation
Realsun Investments Co., Ltd Taiwan Investment holdings 280,000 280,000 28,000,000 100% 395,230 115 115 Subsidiary
Realtek Semiconductor
Corporation
Hung-wei Venture Capital Co.,
Ltd
Taiwan Investment holdings 250,000 250,000 25,000,000 100% 374,487 1,679)( 1,679)( Subsidiary
Realtek Semiconductor
Corporation
Realking Investments Limited Taiwan Investment holdings 293,930 293,930 29,392,985 100% 311,061 1,195)( 1,195)( Subsidiary
Realtek Semiconductor
Corporation
Realsun Technology Corporatioin Taiwan ICs manufacturing, design, research,
development, sales, and marketing
5,000 5,000 500,000 100% 5,563 - - Subsidiary
Realtek Semiconductor
Corporation
Bobitag Inc. Taiwan Manufacturing and installation of
computer equipment and wholesasle,
retail and related services of
electronic materials and
information/software
20,000 20,000 1,918,910 66.67% 19,264 37 51 Subsidiary
Realtek Semiconductor
Corporation
Technology Partner V Venture
Capital Corporation
Taiwan Investment holdings 84,565 84,565 5,969,298 32.43% 38,110 9,280)( 2,973)( Note 1
Realtek Semiconductor
Corporation
Estinet Technologies
Incorporation
Taiwan Research and development, design,
manufacturing, sales and other
services of electronic
components,information/Software
and integrated circuits.
110,000 110,000 4,000,000 20.15% 37,596 15,591)( 1,886 Note 1
Realtek Semiconductor
Corporation
5VTechnologies, Taiwan Ltd. Taiwan Research and development, design,
manufacturing, sales and other
services of electronic
components,information/Software
and integrated circuits.
46,699 46,699 4,669,917 24.42% 13,159 12,069)( 2,948)( Note 1
Realking Investments Limited Innorich Venture Capital Corp. Taiwan Venture capital activities 200,000 200,000 20,000,000 37.38% 166,701 3,269)( - Note 1
Leading Enterprises Limited Realtek Semiconductor (Japan)
Corp.
Japan ICs deign,sales, and consultancy 5,568 5,568 400 100% 4,870 2,643 - Sub-Subsidiary
Leading Enterprises Limited Circon Universal Inc. Mauritius Investment holdings 1,997,460 1,991,498 64,800,000 100% 8,340 - - Sub-Subsidiary
Net profit (loss)
of the investee for the
three-month period
ended
March 31, 2019
Investment income (loss)
recognised by the
Company for the three-
month period ended
March 31, 2019 FootnoteInvestor Investee Location
Main business
activities
Initial investment amount Shares held as at March 31, 2019
Information on investees
For the three-month period ended March 31, 2019
Table 7 Expressed in thousands of NTD
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Table 7 Page 1
Balance as at
March 31, 2019
Balance as at
December 31,
2018 Number of shares Ownership (%) Book value
Net profit (loss)
of the investee for the
three-month period
ended
March 31, 2019
Investment income (loss)
recognised by the
Company for the three-
month period ended
March 31, 2019 FootnoteInvestor Investee Location
Main business
activities
Initial investment amount Shares held as at March 31, 2019
Information on investees
For the three-month period ended March 31, 2019
Table 7 Expressed in thousands of NTD
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Leading Enterprises Limited Realtek Singapore Private
Limited
Singapore ICs manufacturing, design, research,
development, sales, and marketing
$ 1,287,612 $ 1,283,769 9,856,425 10.97% $ 1,145,225 1,447,331$ -$ Sub-Subsidiary
Amber Universal Inc. Realtek Semiconductor (HK)
Limited
Hong Kong Information services and technical
support
5,890 5,886 - 100% 1,193 9)( - Sub-Subsidiary
Realtek Singapore Private
Limited
Empsonic Enterprises Inc. Mauritius Investment holdings 870,806 868,207 2,825,000 100% 1,451,674 9,026 - Sub-Subsidiary
Realtek Singapore Private
Limited
Cortina Access Inc. U.S.A R&D and information services 1,259,078 1,255,320 16,892 100% 1,143,628 7,545 - Sub-Subsidiary
Realtek Singapore Private
Limited
Cortina Systems Taiwan Limited Taiwan R&D and technical support 61,650 61,466 21,130,000 100% 64,428 2,076 - Sub-Subsidiary
Realtek Singapore Private
Limited
Realtek Viet Nam Co., Ltd. Vietnam R&D and technical support 30,825 30,733 1,000,000 100% 27,272 1,949)( - Sub-Subsidiary
Talent Eagle Enterprise Inc. Ubilinx Technology Inc. U.S.A R&D and information services 924,750 799,058 30,000,000 100% 53,269 93,672)( - Sub-Subsidiary
Note 1:Investee
Table 7 Page 2
Remitted to
Mainland
China
Remitted
back to
Taiwan
Cortina Network Systems
Shanghai Co., Ltd.
R&D and technical support 110,970$ 2 110,970$ $ - $ - 110,970$ 1,333$ 100% 1,333$ 110,548$ $ -
Realsil Microelectronics
Corp.
R&D and technical support 863,100 2 863,100 - - 863,100 8,980 100% 8,980 1,446,741 -
Realtek Semiconductor
(Shen Zhen) Corp.
R&D and technical support 154,125 2 154,125 - - 154,125 297)( 100% 297)( 246,513 -
RayMX Microelectronics
Corp.
ICs manufacturing, design,
research, development,
sales, and marketing
120,407 2 120,407 - - 120,407 2,485 100% 2,485 121,764 -
Company name
Accumulated amount
of remittance from Taiwan
to Mainland
China as of
March 31, 2019
Investment amount
approved by the
Investment
Commission of the
Ministry of
Economic Affairs
(MOEA)
Ceiling on
investments in
Mainland China
imposed by the
Investment
Commission of
MOEA
Cortina Network Systems
Shanghai Co., Ltd.
110,970$ 110,970$ $ 15,697,308
Realsil Microlectronics
Corp.
863,100 863,100
Realtek Semiconductor
(Shan Zhen) Corp.
154,125 154,125
RayMX Microelectronics
Corp.
120,407 120,407
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others.
Note 2: In the ‘Investment income (loss) recognised by the Company for the for the three-month period ended March 31, 2019’ column:
(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements that are reviewed by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are reviewed and by R.O.C. parent company’s CPA.
C. Others.(Seif-edit financial statements)
Note 3: The numbers in this table are expressed in New Taiwan Dollars.
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Information on investments in Mainland China
For the three-month period ended March 31, 2019
Table 8 Expressed in thousands of NTD
(Except as otherwise indicated)
Footnote
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of March 31,
2019
Net income of
investee for the
three-month
period ended
March 31, 2019
Investee in Mainland
China Main business activities Paid-in Capital
Investment
method
(Note1)
Accumulated amount of
remittance from Taiwan to
Mainland China as of
January 1, 2019
Ownership held
by the Company
(direct or
indirect)
Investment income (loss)
recognised by the
Company for the three-
month period ended
March 31, 2019
(Note2(2)C)
Book value of
investment in
Mainland China
as of March 31,
2019
Accumulated
amount of investment
income remitted back to
Taiwan as of March 31,
2019
Amount remitted from
Taiwan to Mainland
China/Amount remitted
back to Taiwan for the
three-month period ended
March 31, 2019
Table 8 Page 1
Amount % Amount %
Balance at
March 31,
2019 %
Balance at
March 31,
2019 Purpose
Maximum
balance
during
the for the
three-month
period ended
March 31,
2019
Balance at
March 31, 2019
Interest
rate
Interest during
the for the
three-month
period ended
March 31,
2019
Realsil Microelectronics
Corp.
$ - - $ - - $ 174,562 0.28 $ - - $ - -$ - -$
Realtek Semicomductor
(Shen Zhen) Corp.
- - - - 29,997 0.05 - - - - - -
Cortina Network Systems
Shanghai Co., Ltd.
- - - - 25,637 0.04 616,500 Operations - - - -
RayMX Microelectronics
Corp.
( 41,191) 0.32 - - ( 141,546) 0.23 1,355,619 Operations - - - -
OthersInvestee in Mainland China
Technical service fees Property transaction
Accounts receivable
(payable)
Provision of
endorsements/guarantees or
collaterals Financing
(Except as otherwise indicated)
REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES
Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas
For the three-month period ended March 31, 2019
Table 9 Expressed in thousands of NTD
Sales
(purchase)
-
25,645
Amount
67,160
$ 334,026
Table 9 Page 1
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